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The People’s Bank of China (PBOC) will deepen the market-oriented reform of the foreign exchange market, increase the flexibility of the yuan’s exchange rate, guide companies and financial institutions to uphold the principle of risk neutrality, strengthen expectation management and maintain the yuan’s exchange rate basically stable at reasonable levels, the central bank said at a third-quarter policy meeting.
The central bank will build a mechanism for financial institutions to provide effective support to the real economy, improve the system to provide financial support to innovation, guide financial institutions to increase medium- and long-term loans to the manufacturing sector and stabilize supply chains and industry chains, it said.
It will make efforts to make financial institutions’ support to private companies matches private companies’ contribution to the economic and social development and to improve the green financial system to achieve the carbon-peaking and carbon-neutrality goals.
The central bank will improve the formation and transmission mechanism of interest rates, optimize central bank’s policy rate system, make market-oriented adjustments to deposit rates play its role and lower financing cost for companies and lower the cost for consumer loans, it said.
Local governments should make better use of city-specific policies to support genuine housing needs, accelerate the use of special loans extended to ensure delivery of residential property projects, the PBOC said.
The authority should guide commercial banks to provide supportive financing support, safeguard home consumers’ legitimate rights and interests and promote healthy and steady development of the real estate market, the central bank said.
China will promote healthy and sustainable development of the platform economy and adopt regular supervision on the sector, it said.
China will promote high-level opening up of the financial market and strengthen the ability for financial management and risk controls when the market opens up, it added.