On September 28, China released clear easing signals in financial policies. Relevant meetings clarified that the country will maintain a moderately loose monetary policy, strengthen counter-cyclical adjustment, enhance policy coordination between monetary and fiscal tools, and fully stabilize economic growth, prices and market expectations.

China’s economy maintains steady recovery but still faces divergent internal and external demand and uneven recovery rhythms. The latest policy orientation aims to hedge downward economic pressure and activate market liquidity through flexible and appropriate monetary regulation. Policies will give full play to both aggregate and structural functions, maintaining reasonable and sufficient market liquidity to reduce financing costs for real enterprises, and implementing targeted support for key fields including technological innovation, micro and small enterprises, and livelihood infrastructure.

Meanwhile, authorities will coordinate growth stabilization and exchange rate stability, keeping the RMB exchange rate basically stable at a reasonable and balanced level to underpin the stable operation of the financial market. Going forward, policies will be more forward-looking, flexible and targeted, revitalizing existing policy tools and leveraging new instruments to form synergies. Market interpretations suggest the intensified counter-cyclical adjustment will further boost market confidence, facilitate the recovery of the real economy, and support the stable performance of stock and bond markets. It will provide solid policy support for the economic year-end sprint, releasing continuous policy dividends for various real industries and capital markets.