Pan Gongsheng, Governor of the People's Bank of China, said today at the 2024 Financial Street Forum annual meeting that the People's Bank of China has three main considerations in the policy formulation process. First, the current operation of the economy requires the implementation of strong macro-aggregate support policies. The central government's decisive decision to introduce a package of incremental policies reflects its firm determination to stabilize the economy, stabilize expectations, promote consumption, and benefit people's livelihood, and the market has responded positively. Second, there are still some outstanding contradictions and challenges in the current operation of the economy, mainly the real estate market and capital market. Based on international experience and China's past practice, it is necessary to introduce targeted policies to deal with it. Third, central banks need to observe and evaluate financial market risks from the perspective of macroprudential management, and take appropriate measures to weaken the accumulation of financial market risks. Recently, the People's Bank of China has strengthened communication with the market on the operation of long-term treasury bond yields several times, with the aim of curbing the systemic risks hidden in the unilateral decline in long-term treasury bond yields due to the herd effect.

Pan Gongsheng, Governor of the People's Bank of China, said today at the 2024 Financial Street Forum annual meeting that the People's Bank of China has three main considerations in the policy formulation process. First, the current operation of the economy requires the implementation of strong macro-aggregate support policies. The central government's decisive decision to introduce a package of incremental policies reflects its firm determination to stabilize the economy, stabilize expectations, promote consumption, and benefit people's livelihood, and the market has responded positively. Second, there are still some outstanding contradictions and challenges in the current operation of the economy, mainly the real estate market and capital market. Based on international experience and China's past practice, it is necessary to introduce targeted policies to deal with it. Third, central banks need to observe and evaluate financial market risks from the perspective of macroprudential management, and take appropriate measures to weaken the accumulation of financial market risks. Recently, the People's Bank of China has strengthened communication with the market on the operation of long-term treasury bond yields several times, with the aim of curbing the systemic risks hidden in the unilateral decline in long-term treasury bond yields due to the herd effect.