The State Council Information Office (SCIO) held a press conference at 3 p.m. on Monday, September 22, 2025, one of a series themed on “high-quality accomplishment of the 14th Five-Year Plan”. At the conference, Pan Gongsheng, Governor of the People’s Bank of China (PBOC), Li Yunze, Minister of the National Financial Regulatory Administration (NFRA), Wu Qing, Chairman of the China Securities Regulatory Commission (CSRC), and Zhu Hexin, PBOC Deputy Governor and Administrator of the State Administration of Foreign Exchange (SAFE) briefed the attendees on the achievements made in China’s financial sector during the 14th Five-Year Plan period. They also answered questions from the press. The transcript is as follows.
Shou Xiaoli, Director-General of SCIO Press Bureau and SCIO spokesperson: Good afternoon, ladies and gentlemen. Welcome to the SCIO press conference. Today is another press conference of the themed series on “high-quality accomplishment of the 14th Five-Year Plan”. Present at the conference are PBOC Governor Pan Gongsheng, NFRA Minister Li Yunze, CSRC Chairman Wu Qing, and PBOC Deputy Governor and SAFE Administrator Zhu Hexin. They will give us briefings on the achievements made in China’s financial sector during the 14th Five-Year Plan period. And they will take questions.
I now give the floor to Mr. Pan Gongsheng.
Pan Gongsheng, PBOC Governor: Good afternoon, friends from the press. Glad to be here again at the SCIO press conference. Thanks for the constant attention and support you have given to the reform and development of China’s financial sector and to the work of the PBOC.
This year marks the end of the 14th Five-Year Plan period. In the face of the complicated and volatile situations at home and abroad over the past five years, the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core has put forth the strategic objective of “moving faster to build China into a country with a strong financial sector”, setting a clear direction for advancing the financial work in the new era. Under the strong leadership of the CPC Central Committee, China’s financial development has witnessed new and significant achievements. With the deepening of the financial system reform across the board and further improvements in the top-level design, the modernization of China’s financial governance system and capacity has entered a new stage. The systems of financial institutions, financial markets, and financial products have been further developed to see complete categories and full competition. At the same time, the quality, efficiency, and inclusiveness of financial services have been greatly improved. With the mitigation of financial risks in the key sectors proceeding in an orderly manner, we have successfully defended the bottom line whereby no systemic risks will occur. What’s more, China’s financial sector, opening up at a faster pace, has become much more competitive and influential internationally. As of end-June 2025, China’s banking sector, with its total assets close to RMB470 trillion, ranked first in the world; China’s stock market and bond market both ranked second globally by market size; and China’s foreign exchange reserves remained the highest in the world for 20 consecutive years. A forerunner globally in areas such as green finance, inclusive finance, and digital finance, China has basically put in place a secure and efficient RMB cross-border payment and clearing network which features multiple channels and wide coverage. China’s mobile payment has enjoyed a leading status worldwide. Let me briefly elaborate from the following aspects.
First, financial system reform has been further deepened. The CPC Central Committee has carried out a series of transformative reforms in the leadership and regulatory systems for the financial sector. The establishment of the Central Financial Commission and the Central Financial Work Commission has strengthened the CPC Central Committee’s centralized and unified leadership over financial work, turning the political and institutional advantages of socialism with Chinese characteristics into effective financial governance. Benchmarking against the six key core elements that a strong financial powerhouse should possess, China is accelerating the building of a modern financial system and striving to promote the high-quality development of its financial industry.
Second, the quality and efficiency of the financial sector in serving the real economy have been greatly enhanced. Adhering to a supportive monetary policy stance, the PBOC has preliminarily established a modern monetary policy framework with Chinese characteristics, with more effective implementation and transmission, helping to achieve the main economic and social development goals of the 14th Five-Year Plan. At the same time, steady progress has been made in advancing the five major financial areas, namely, technology finance, green finance, inclusive finance, old-age finance and digital finance, providing strong support for national strategies as well as key areas and weak links in economic and social development. A sound policy framework for technology finance has been improved, continuously improving the capacity, intensity, and effectiveness of financial support for technological innovation, and meeting the financing needs of tech-based enterprises across different stages of their life cycle. During the 14th Five-Year Plan period, the average annual growth rates of loans to tech-based small and medium-sized enterprises (SMEs), inclusive loans to micro and small businesses (MSBs), and green loans have all exceeded 20%. Especially since the meeting of the Political Bureau of the CPC Central Committee held in September 2024, following the arrangements of the CPC Central Committee, the PBOC has introduced a series of monetary and financial policy measures, which have effectively stabilized market expectations, boosted confidence, and promoted sustained economic recovery and high-quality development.
Third, reform and opening up of the financial sector has continued to advance. Continuous efforts have been made to promote financial supply-side structural reform, deepen reforms of financial institutions, develop multi-tiered financial markets, and optimize the financial structure. The financial sector is steadily promoting high-level two-way opening-up and enhancing institutional opening-up. China’s participation, influence, and voice in international financial governance and cooperation have been significantly elevated.
Fourth, significant progress has been made in preventing and defusing financial risks. In line with the arrangements of the CPC Central Committee, the financial sector has addressed a number of prominent risks in an orderly manner, effectively forestalling and mitigating the spillover and shocks of external risks on China’s financial markets. with strong protection for the interests of depositors and small and medium investors. Currently, China’s financial system remains generally sound, financial institutions are overall healthy, and financial markets are operating smoothly.
Over the past five years, the major achievements in China’s financial development offer many valuable experiences worth summarizing and upholding over the long term. First, the fundamental factor is the scientific guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Second, based on its realities, China pursues a financial development path with Chinese characteristics. Third, financial work must be deeply rooted in its people-centered nature and serve its fundamental mission. Finance should serve the real economy, meeting the needs of economic and social development and the people. Fourth, preventing and defusing financial risks is the eternal theme in financial work. Fifth, it is essential to adhere to market principles and the rule of law, ensuring the market's decisive role in allocating financial resources, with regulation strictly exercised in accordance with the law and operational compliance fully assured. Sixth, it is crucial to adhere to full and strict governance over the Party and resolutely fight against financial corruption.
Building China into a financial powerhouse requires sustained and long-term efforts. The PBOC will continue to implement the decisions and arrangements of the CPC Central Committee, formulate high-standard plans for the financial development during the 15th Five-Year Plan period, and contribute more financial strength to advancing Chinese modernization.
Today’s press briefing focuses on the financial sector’s achievements during the 14th Five-Year Plan period. It is primarily a mid-to-long-term review and summary of this period and does not involve adjustments to short-term policies. Regarding the 15th Five-Year Plan and the next steps in financial reform, we will communicate further with you following unified arrangements.
Thank you.
Haibao News: The 14th Five-Year Plan proposed building a modern central banking system. Could you elaborate on how the PBOC worked towards this objective during the 14th Five-Year Plan period? Thank you.
Pan Gongsheng: Thank you for your question. Establishing a modern central banking system and a strong central bank is a crucial task for building a modern financial system in the new era. During the 14th Five-Year Plan period, the PBOC concentrated on strengthening the dual-pillar regulatory framework of monetary policy and macroprudential policy to achieve the dual goals of maintaining stable RMB and financial stability. We accelerated the improvement of the central banking system so as to build China into a financial powerhouse and promote the high-quality economic development. The main efforts include the following aspects:
First, we built a scientific and sound monetary policy system and refined the modern monetary policy framework with Chinese characteristics. Regarding objectives, we optimized intermediate variables for monetary policy, clarified the PBOC’s policy rates, and placed greater emphasis on price-based policy tools, such as interest rates. In terms of implementation, we continuously enriched the monetary policy toolkit, maintained a favorable liquidity environment, created and implemented several structural monetary policy instruments, and optimized credit allocation. We also explored tools to maintain stability in financial markets, expanding the scope of monetary policy. For transmission, we strengthened the transmission and supervision of interest rate policy, and emphasized the market’s decisive role in exchange rate formation. With improved communication mechanism, we constantly improved policy transparency. This modern monetary policy framework with Chinese characteristics has taken initial shape and is continuously being refined. It effectively promoted reasonable growth in financial aggregates, a steady decline in financing costs, and continuous optimization of credit structure, contributing to the overarching goal of currency stability.
Second, we enhanced the macroprudential policy framework and the mechanism for preventing and resolving systemic financial risks. We improved the systems for monitoring, early warning, and disposing of financial risks, strengthened macroprudential management in key areas, and established a fundamental regulatory framework for systemically important financial institutions. This has significantly boosted our capacity to prevent and control systemic financial risks.
Third, we improved the financial market system and financial market infrastructure. We launched the “Sci-tech Board” in the bond market, essentially establishing a multi-tiered bond market framework. The bond market has seen enriched products, expanding scales, and growing briskness. Financial market institutions and regulation have been comprehensively strengthened. China has connected with global financial markets in an orderly manner, and foreign participation has grown steadily.
Fourth, we pursued a higher-level opening-up of the financial sector. We deepened high-level financial opening-up, steadily advanced the international use of RMB, and continued to build and improve a multi-channel, widely accessible, and independently controllable cross-border payment system. We actively participated in global economic governance and cooperation, engaging in the formulation of international financial rules and standards. Meanwhile, We consistently enhanced financial security in an open environment.
Moving forward, the PBOC will fuel the improvement of central banking system with further reforms, steadfastly following the path of financial development with Chinese characteristics, and support high-quality economic development.
Thank you.
CCTV: During the 14th Five-Year Plan period, while supporting high-quality economic development, how does the PBOC strike a balance between stabilizing growth and preventing risks? Thank you.
Pan Gongsheng: Thank you for your question. During the 14th Five-Year Plan period, the PBOC adheres to the general principle of pursuing progress while ensuring stability. On the one hand, we strengthens financial support for the real economy. On the other, we pays close attention to preventing financial risks and safeguarding financial stability. I would like to highlight the following four aspects:
The first is to reasonably maintain the dynamic balance between stabilizing growth and preventing risks. The economy is the foundation of finance. Economic issues often emerge via financial channels, where they spill over and become entangled with financial risks. At the macro level, it is essential to continuously balance economic growth, economic restructuring, and financial risk prevention, thereby fostering high-quality economic development and ensuring financial stability from the outset.
The second is to resolve risks in key areas in an orderly manner. In terms of defusing the debt risks related to financing platforms, we have enforced strict fiscal discipline, urged local governments to coordinate funds, assets, and resources to resolve debt risks, spun off the government financing function of financing platforms, and transformed them into market-oriented business entities. Financial institutions are guided to reduce the liquidity risks and interest burdens of financing platforms through debt restructuring. Important milestones have been achieved in these efforts. As of end-June this year, compared with early 2023, the number of financing platforms had dropped by more than 60 percent, and their financial debt had decreased by over 50 percent. Overall, the risks related to local government financing platforms have been substantially reduced. In supporting the resolution of real estate risks, the PBOC has leveraged its macro-prudential management functions, optimized and adjusted policies on down payment ratios and mortgage rates, and reduced the interest rates on existing home loans. These measures will help reduce the interest expenses for mortgage borrowers by about RMB300 billion per year for more than 50 million households. In resolving risks faced by small and medium-sized financial institutions, together with financial regulators and local governments, we have adopted a combination of measures, including online remediation, mergers and restructurings, and market exit, resulting in a significant reduction in the number of high-risk small and medium-sized banks from peak levels.
The third is to maintain the sound operation of the financial market. In the foreign exchange market, we uphold the decisive role of the market in determining the exchange rate. Despite the volatile external environment, the RMB exchange rate has remained basically stable. After years of development, participants in China’s foreign exchange market have become more mature, the use of hedges against exchange rate risks have become more widespread, and the market has become more resilient. In the bond market, the PBOC monitors and assesses market conditions from a macro-prudential perspective, strengthens regulatory coordination, and provides timely risk alerts to market participants, thereby effectively mitigating and containing the buildup of risks. The bond default rate has remained low, and the market has remained generally stable. In the capital market, the PBOC explores monetary policy tools to stabilize the market. Together with the CSRC, we have introduced two instruments: the swap facility and the central bank lending for stock repos and increase in holdings. We also support Central Huijin Investment Ltd. in playing a role similar to that of a stabilization fund, while continuously improving the long-term mechanisms that underpin capital market stability.
The fourth is to improve the system that safeguards financial stability. In terms of institutional arrangement, we continue to accelerate the formulation or amendment of major laws, such as the Law on Financial Stability and the Law of the People’s Republic of China on the People’s Bank of China, while constantly strengthening systems for financial risk monitoring, assessment, and early warning. In terms of resource support, we have established a Financial Stability Fund, and the deposit insurance mechanism is operating smoothly and in an orderly manner.
Overall, during the 14th Five-Year Plan period, China’s financial risks have remained generally controllable, and the financial system has operated soundly, providing strong support for high-quality economic development. In this process, we have also distilled some important experience.
First, strengthening the centralized and unified leadership of the CPC Central Committee over financial work is the fundamental guarantee for preventing and defusing major financial risks. It enables close coordination and synergy between central and local governments.
Second, we must view the relationship between the economic and financial risks from a macro perspective. High-quality macroeconomic development and the stable functioning of financial markets are the foundation for the sound operation of individual financial institutions. In practice, it is necessary to balance short-term and long-term goals, support for the real economy and the soundness of the financial system itself, as well as internal and external equilibria, so as to safeguard China’s financial stability and financial security.
Third, risks must be resolved prudently based on market-oriented principles and the rule of law, while protecting the legitimate rights and interests of all parties. We must strengthen market discipline, urging all parties to effectively fulfill their responsibilities and obligations, and strictly guard against risk contagion and moral hazard. At the same time, we will improve the risk resolution mechanism with well-aligned responsibilities and rights, as well as compatible incentives and constraints.
Fourth, we will comprehensively strengthen financial regulation and crack down hard on financial corruption. Financial regulation serves as the first line of defense against financial risks. We must strengthen our capacity for risk monitoring, early warning, and assessment to ensure early identification, warning, exposure, and resolution of risks. We will strictly investigate and punish dereliction of duty and misconduct in financial regulation, as well as all forms of corruption and violations of laws and disciplines.
Going forward, the PBOC will further explore and expand its macro-prudential and financial stability functions, and firmly defend the bottom line whereby no systemic risks will occur.
Thank you.
CNBC: The Federal Reserve cut interest rates by 25 basis points at its September meeting. What are considerations does the PBOC have for its next steps in monetary policy? Thank you.
Pan Gongsheng: A few days ago, the Federal Reserve lowered the federal funds rate by 25 basis points. This move had been fully priced in by the global financial markets, and the reaction was relatively stable. The U.S. dollar index remained around the 97 range, and international capital markets generally trended upwards, while commodity markets fluctuated downwards. In China, major financial markets, including stocks, bonds and foreign exchange, have also remained stable.
The macro-level principles guiding the PBOC’s monetary policies are quite clear. We focus on domestic conditions while also striking a balance between internal and external equilibria. Regarding the current stance of China’s monetary policy, we have communicated with the market on multiple occasions, and it’s well understood. Our current stance is supportive, as we implement an appropriately accommodative monetary policy, which has created a favorable monetary and financial environment for the sustained economic recovery and the stable operation of financial markets.
Looking ahead, we will comprehensively employ a variety of monetary policy tools based on macroeconomic developments and changing circumstances to ensure ample liquidity, reduce overall financing costs for the real economy, support boosting consumption and expanding effective investment, consolidate and enhance the momentum of economic recovery, maintain the stable operation of financial markets, and keep the RMB exchange rate basically stable at an adaptive and equilibrium level.
Thank you.
Financial Times: The opening-up of the financial sector is a key component of China’s broader opening-up. During the 14th Five-Year Plan period, what achievements has the PBOC made in deepening high-level financial opening-up? Thank you.
Pan Gongsheng: Thank you for your question. The opening-up of the financial sector is indeed a crucial part of China’s overall reform and opening-up cause. During the 14th Five-Year Plan period, in line with decisions and arrangements of the CPC Central Committee, we have mainly made progress in the following areas:
First, the institutional opening-up of the financial sector has advanced steadily. In collaboration with other financial regulatory authorities, we have promoted the orderly, high-level opening-up of financial services and markets, expanded the connectivity between domestic and international financial markets, and optimized mechanisms of the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, Bond Connect, and Swap Connect. These efforts have facilitated broader participation of overseas investors in China’s financial markets, and improved the level of internationalization of our financial markets. As of end-July, overseas institutions and individuals held over RMB10 trillion in domestic stocks, bonds, deposits and loans, while issuance volume of Panda Bonds by overseas institutions exceeded RMB1 trillion.
Second, the international status of the RMB has risen steadily. We have continuously enhanced the institutional arrangements and financial infrastructures for cross-border use of the RMB, and gradually expanded bilateral local currency swaps. These swaps play a crucial role in our cooperation with the central banks of many countries. To date, we have signed such swap agreements with the central banks or monetary authorities of 32 countries and regions. Additionally, the network of RMB clearing banks has continued to expand, promoting the development of offshore RMB markets. and strengthening the market’s endogenous demand for the RMB. At present, the RMB is the largest settlement currency for China’s cross-border receipts and payments as well as the world’s third most used currency in trade financing and in payments, and it ranks third by weight in the IMF’s Special Drawing Right (SDR) basket. From a longer-term perspective, the steady rise of the RMB’s international status is a key feature of the international monetary system’s evolution over the past 20 years.
Third, steady progress has been made in developing international financial centers. We have supported Shanghai in building itself into a global RMB asset allocation and risk management center. In collaboration with relevant departments, we have introduced a series of policy measures, including establishing an interbank market trade repository and an e-CNY international operations center in Shanghai. These initiatives have diversified Shanghai’s financial market ecosystem, attracted greater international investor participation, and supported the IMF in establishing a regional center in Shanghai. Moreover, we have continued to deepen financial cooperation between the Mainland and Hong Kong, strengthening Hong Kong’s role as an offshore RMB business hub, consolidating and elevating its status as an international financial center, and safeguarding its prosperity, stability and development.
Fourth, the business environment has become more friendly and inclusive. We have advanced reforms in cross-border RMB and foreign exchange management in a coordinated manner, significantly facilitating cross-border trade, investment and financing. In addition, we have continuously improved cross-border payment services. We have essentially established a diversified cross-border payment system, comprising the RMB Cross-border Interbank Payment System, the intra-bank cross-border system of commercial banks, and the cross-border retail payment systems built by China UnionPay, Alipay, and WeChat Pay. Moreover, the role of e-CNY in cross-border payment is evolving and holds significant potential. We have also optimized the management of cross-border financial data flows, making the process more standardized and convenient.
Fifth, our ability to prevent and mitigate financial risks in an open economy has been further strengthened. We have strengthened the monitoring, assessment and early warning mechanisms for cross-border financial risks. Additionally, we have been actively contributing to building a more just and equitable architecture for global financial governance, coordinating global macroeconomic policies, and developing global and regional financial safety nets.
Moving forward, the PBOC will continue to deepen opening-up and cooperation in the financial sector, safeguard national financial security, promote high-quality financial development through high-level financial opening-up, and better serve the Chinese modernization. Thank you.
