Pan Gongsheng, Governor of the People's Bank of China, announced several upcoming policy initiatives by the People's Bank of China at the 2026 Financial Street Forum Annual Meeting. First, it will work with the General Financial Supervisory Authority and the China Securities Regulatory Commission to establish liquidity support tools to deal with large redemptions by non-bank institutions. The purpose of this tool is to establish a mechanism to stabilize the bond market, and it forms a new tool for macroprudential management by the People's Bank of China. The tool comprehensively balances the systemic risks and moral risks of the financial market system and is used in specific situations where asset management institutions face group liquidity risks and the bond market experiences a negative redemption-sell-off cycle; operations with central banks must meet macroprudential requirements, provide high-grade collateral, prevent distortions in financial market pricing, create the illusion of undermining, and maintain market discipline. Institutions applicable to the tool include bank financial management subsidiaries, public fund managers, and corresponding bank parent banks, securities parent companies, etc. The second is to expand the scope of institutions applicable to standing lending facilities. The People's Bank of China will be further incorporated into domestic and foreign corporate banks, while clarifying that national banks will apply the same operating arrangements to achieve full coverage of domestic deposit-type financial institutions. After domestic and foreign corporate banks were included, they also received liquidity support channels from the central bank, which helped them develop their business better. The third is to promote the implementation of interbank and exchange bond markets. The interconnection between financial market infrastructure can facilitate the issuance and trading of bonds across markets, promote increased market liquidity and price formation, and better play the role of financial market price discovery and resource allocation. Fourth, the pilot will further facilitate overseas financial institutions to carry out RMB purchase and sale business in the domestic foreign exchange market. The People's Bank of China plans to allow eight Chinese and foreign RMB overseas clearing banks to carry out proprietary transactions in the domestic interbank foreign exchange market in accordance with international financial market practices and trading practices, facilitate the deeper participation of overseas institutions in the domestic foreign exchange market, and promote the integrated development of onshore and offshore markets. In the future, we will further increase the openness of the foreign exchange market based on the pilot situation. Fifth, together with 10 departments including the Ministry of Science and Technology, the “Guiding Opinions on Financial Support for the Construction of International Science and Technology Innovation Centers in Beijing, Shanghai, and the Guangdong-Hong Kong-Macao Greater Bay Area” was issued. The People's Bank of China will accelerate the construction of a technology finance service system compatible with the core functions and international positioning of international science and technology innovation centers, raise the level of full-chain and diversified financial supply, guide financial institutions to enhance professional service capabilities, strengthen information sharing, mutual recognition of standards and facility connectivity within the region, and promote policies such as refinancing, “technology boards” in the bond market, and cross-border investment and financing in relevant regions to help build a high-level technology finance ecosystem.

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