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, together with the Securities Regulatory Commission, has formulated two tools to help support the stable development of the capital market. Both tools are designed based entirely on market-based principles, and have also been successfully implemented internationally. Exchange facilities for securities, funds, and insurance companies do not directly provide financial support to the market by the central bank, and will not expand the central bank's money supply and base currency investment; the funds provided by the central bank to repurchase stocks and increase reloan holdings are specific. The fact that credit funds cannot enter the stock market in violation of regulations is still a red line of financial supervision. These two instruments reflect the expansion and new exploration of the central bank's role in maintaining financial stability. We will cooperate with the Securities Regulatory Commission to gradually improve in practice and explore normalized institutional arrangements. From a macro and deep perspective, the real economy and the capital market are intertwined and interacting processes. Valuation repair helps the capital market perform investment and financing functions, stop the negative cycle of market weakness and equity pledge risk, promote the healthy development of listed companies, improve social expectations, and boost consumption and investment demand.

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, together with the Securities Regulatory Commission, has formulated two tools to help support the stable development of the capital market. Both tools are designed based entirely on market-based principles, and have also been successfully implemented internationally. Exchange facilities for securities, funds, and insurance companies do not directly provide financial support to the market by the central bank, and will not expand the central bank's money supply and base currency investment; the funds provided by the central bank to repurchase stocks and increase reloan holdings are specific. The fact that credit funds cannot enter the stock market in violation of regulations is still a red line of financial supervision. These two instruments reflect the expansion and new exploration of the central bank's role in maintaining financial stability. We will cooperate with the Securities Regulatory Commission to gradually improve in practice and explore normalized institutional arrangements. From a macro and deep perspective, the real economy and the capital market are intertwined and interacting processes. Valuation repair helps the capital market perform investment and financing functions, stop the negative cycle of market weakness and equity pledge risk, promote the healthy development of listed companies, improve social expectations, and boost consumption and investment demand.