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E-mail China.org.cn, February 28, 2025
Xinhua Finance:
The Central Financial Work Conference outlined five major work priorities regarding finance. What were the highlights of the PBC's work in this regard for 2024? What policy considerations are there for 2025? Thank you.
Xuan Changneng:
I would like to invite Mr. Zou to answer these questions.
Zou Lan:
Thank you for your questions. I'll answer these. Doing a good job in the five major areas of technology finance, green finance, inclusive finance, pension finance and digital finance is an important focus for the high-quality development of financial services for the real economy. Since the Central Financial Work Conference, the PBC, in conjunction with relevant departments, has formulated and issued guiding documents in various fields, refined work measures, accelerated policy transmission, and made positive progress.
Among the five major areas, technology finance ranks first. Mr. Xuan stated in his opening remarks that last year the PBC established a 500 billion yuan re-lending program for sci-tech innovation and technological transformation, continuously enhancing financial support for sci-tech innovation, advancing the development of pilot financial reform zones for scientific and technological innovation, optimizing the cross-border financing system and mechanism for tech enterprises, and building a diversified and relay-style sci-tech financial system. In terms of green finance, we have optimized carbon reduction support tools, and the pilot program in Shanghai expanded the scope of support to low-carbon transition, guiding more credit resources toward green and low-carbon development. In terms of inclusive finance, the interest rate for re-lending to support agriculture and small enterprises has been reduced from 2% to 1.75%, and the quota has been increased by 100 billion yuan. We have implemented five major special actions to increase financial support for all-around rural revitalization. Efforts have also been made in pension finance and digital finance, while systems and market development have been continuously strengthened.
At present, policy frameworks in various fields are basically sound, and structural monetary policy tools have achieved comprehensive coverage in the five areas, with continued effectiveness. Financial support has been improved. By the end of 2024, loans to enterprises that use specialized and sophisticated technologies to produce novel and unique products increased by 13% year on year, inclusive small and micro loans rose by 14.6% year on year, and agricultural-related loans grew by 9.8% year on year. By the end of the third quarter of 2024, green loans increased by 25.1% year on year. These loans grow significantly faster than all types of loans during the same period, indicating that the credit structure has been optimized further. The availability of financing has improved significantly. The number of micro-sized and small businesses receiving inclusive loans has exceeded 60 million, accounting for approximately one-third of business entities, while the loan approval rate for technology-based small- and medium-sized enterprises (SMEs) is close to 50%. Financing costs remain at a low level. In December 2024, the weighted average interest rate for newly issued corporate loans was around 3.43%.
Next, the PBC will further improve the top-level system design, formulate guidelines for the five major areas, refine policy measures by focusing on key areas and weak links, and comprehensively enhance the quality and efficiency of financial services for the real economy. First, we will strengthen positive incentives, leverage the guiding and driving role of structural monetary policy tools and macro credit policies, enhance coordination with fiscal policies, and guide financial institutions to increase credit resource input and optimize credit structures. Second, we will enhance the service capabilities of financial institutions, improve their internal incentive and restraint mechanisms, further diversify the range of financial products, and strengthen risk assessment capabilities and financial service technologies. Third, we will broaden financing channels, support enterprises in raising funds through bonds, equity and other market mechanisms, and increase the proportion of direct financing.
That's all from me. Thank you.
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