At the Central Economic Work Conference held from December 10 to 11, it was clearly stated that tools such as reserve requirement ratio cuts and interest rate cuts will be flexibly used to maintain sufficient liquidity, with key support for domestic demand, scientific and technological innovation, and micro, small, and medium-sized enterprises. The conference also emphasized maintaining the reasonable and balanced stability of the RMB exchange rate and improving the expectation management mechanism.

The policy signals were quickly recognized internationally. On December 11, the World Bank raised its 2025 economic growth forecast for China by 0.4 percentage points, stating that proactive fiscal and monetary policies have supported consumption and investment. On the same day, the People’s Bank of China conducted a 7-day reverse repurchase operation of 118.6 billion yuan, keeping the interest rate unchanged at 1.40%. Although 180.8 billion yuan of reverse repos matured on that day, the intention of precise regulation was evident. Domestic financial reforms are advancing simultaneously—more than 20 banks have planned to abolish their supervisory boards this year, with the board audit committees taking over their functions to improve governance efficiency.