Central Bank News | China's Imprint of the G20's Vision of "Strong, Sustainable and Balanced Growth"

People's Bank of China

On August 10-12, 2016, Yi Gang, deputy governor of the People's Bank of China, went to Shaanxi to carry out research on poverty alleviation.

On the morning of August 11, Yi Gang came to the People's Bank of China to set up a poverty alleviation county, Yijun County, Tongchuan City, Shaanxi Province, to investigate the poverty alleviation work of Wujiatun Village, Pengzhen, Yijun County. Yi Gang listened to the report of the first secretary of the People's Bank of China in the village, Qi Chunxu, about the work of getting rid of poverty, and inspected the comprehensive financial service station of Wuhuitun Village, and sent condolences and condolences to poor households.

On the afternoon of August 11, Yi Gang came to the Tongchuan Central Branch of the People's Bank of China to visit the cadres and workers of the Central Committee and met with the main responsible comrades of the Tongchuan Municipal Government. Yi Gang pointed out that the People's Bank of China is responsible for helping two state-level poverty-stricken counties in Yijun County and Yintai District of Tongchuan City. Since the launch of a new round of targeted poverty alleviation work, all units of the People's Bank of China, Xi'an Branch and Tongchuan Zhongzhi have earnestly implemented the major decision-making arrangements of the Party Central Committee and the State Council on winning the fight against poverty, based on their own characteristics, giving play to their industrial advantages and earnestly implementing precise poverty alleviation. Constantly increased the assistance and achieved certain results. It is hoped that the People's Bank of China, the Tongchuan Municipal Party Committee and the Municipal Government will strengthen communication and form a joint effort for poverty alleviation work, contributing to the work of Tongchuan in poverty alleviation.

Later, Yi Gang attended the Symposium on Poverty Alleviation Work of the People's Bank of China and delivered a speech. He fully affirmed the work done by the People's Bank of China in setting up poverty alleviation in Tongchuan in recent years, and expressed gratitude to the Tongchuan Municipal Party Committee and the Municipal Government for their support and support in the Poverty Alleviation Work of the People's Bank of China. Yi Gang pointed out that this survey allows us to see that Tongchuan's financial poverty alleviation work is very characteristic. I believe that rural finance and inclusive finance will certainly make a difference in the countryside. Poverty alleviation is a "one-point deployment, nine-point implementation" work. The PBC should continue to strengthen communication and cooperation with local governments. All financial institutions should give full play to the role of financial poverty alleviation and financial support for the real economy. We will work hard to implement one step by step, implement step by step, win the fight against poverty in accordance with the established plan, and submit a satisfactory answer to the Party Central Committee and State Council with excellent results.

During the period of Shaanxi, Yi Gang also conducted research and guidance on the Yan'an City Center Sub-branch of the People's Bank of China, and made a speech entitled “Supply-side structural reform is the driving force for the sustainable growth of the Chinese economy under the new normal” for the employees of the Xi'an Branch. The special lecture attended the symposium on the analysis of the credit situation of Xi'an Branch. (Finish)

2. The Chinese mark of the G20 vision of “strong, sustainable and balanced growth”

People's Bank of China

In 2016, the G20 summit will be held in Hangzhou on September 4-5. Since the G20 leaders agreed at the 2009 Pittsburgh Summit to establish “strong, sustainable and balanced growth” as the G20's vision for shared growth, all previous G20 summits have been discussed around this vision, and the G20 work has also been carried out. Focus on this overall goal. The vision of “Strong, Sustainable and Balanced Growth” not only expresses the strong desire of the G20 to get out of the crisis and return to high-speed growth, but also reflects the importance attached by all parties to growth sustainability and internal and external economic balance to avoid the recurrence of the crisis. . The international community generally believes that the ability to achieve “strong, sustainable and balanced growth” is the main criterion for measuring the success of the G20 mechanism. Whether it can make a substantial contribution to “strong, sustainable and balanced growth” is to evaluate the G20 summit. Whether it is the key to success.

Against the background of the current global economic recovery and the continued downside risks, all parties have high hopes for China's solidarity G20 to cope with global economic risks and challenges. After nearly a year of hard work, with the joint efforts of China and all parties, the G20 has vigorously promoted the work related to the issue of “strong, sustainable and balanced growth” and intends to submit it to the Hangzhou Summit for discussion. At that time, the G20 will once again show the world its leadership and collective determination to respond to the global economic challenges, and will also leave the "China Imprint" in the "strong, sustainable and balanced growth" vision.

Objectively judge the global situation and maintain market confidence in a timely manner

Since the second half of last year, global financial markets have experienced turbulence many times. During the Spring Festival in February this year, the world's major stock markets fell sharply, and the financial market presented a feeling of “the mountains and the rains are coming to the wind”, filled with more pessimistic emotions. In this context, the world is full of expectations for the first G20 finance ministers and central bank governors meeting hosted by China at the end of February. On the basis of fully assessing the global economic and market situation, China believes that the G20 will make an objective judgment on the global situation at this critical moment. It is essential to avoid the market's "irrational" pessimism and maintain the stability of the macroeconomic environment. Together with the G20 parties, they have made a relatively balanced judgment on the economic situation: both recognize that the global economic risks have risen, but they are not blindly pessimistic, pointing out that "the degree of market volatility does not reflect the fundamentals of the global economy." The G20 made this judgment when the market was most vulnerable, curbed the market's overreaction and pessimism, and successfully maintained confidence.

At the end of June, the unexpected result of the British referendum “Brexit” once again triggered global market turmoil. The market generally expected the G20 finance ministers and central bank governors meeting to speak in July. Faced with this situation, China and the G20 parties calmly responded to the unexpected situation, repeated research and intensive coordination, and finally made a consistent statement at the July meeting, stating that “the G20 is ready to actively respond to the potential economic and financial implications of the British referendum. "In the future, I hope to see the UK as a close partner of the EU." This statement not only shows the confidence of the G20 in controlling the situation, but also makes a positive assumption about the future relationship between the UK and the EU, and once again injects confidence into the market at critical moments.

Actively curb the devaluation of competition and closely carry out exchange rate communication

At the beginning of this year, the global foreign exchange market fluctuated. Some media speculated that the G20 would introduce exchange rate coordination measures and speculate on the “New Square Agreement”. Although this proposal is unrealistic, it also reflects the fact that there were some signs of competitive exchange rate devaluation in some countries. Although some countries did not directly adopt policy measures against the exchange rate, they were also happy in the context of the economic downturn and the appreciation of the local currency. Its exchange rate depreciation. To this end, under the impetus of China and major countries, the parties reaffirmed that “will avoid competitive devaluation and not to peg the exchange rate for competitive purposes”, which was very targeted in the context of the time and was released to the outside world. The strong signal is not only a behavioral constraint on the G20 members themselves, but also a model for non-G20 members, which is conducive to eliminating concerns about the outbreak of “currency war”.

At the same time, the G20 also promised for the first time “to discuss the communication in the foreign exchange market closely”, which is a language that has not been used before. In fact, the G20 itself is a global economic and financial policy coordination platform, and has been discussing and communicating exchange rate issues. However, this time clearly pointed out that the foreign exchange market embodies the G20's high attention to exchange rate fluctuations at that time, and highlights the importance of mutual ventilation between G20 members. G20 members will conduct discussions and informally inform each other about policy considerations, exchange information on the development of their respective market conditions, exchange views on the global economic outlook, and avoid surprises to other countries. At the same time, considering that the International Monetary Fund (IMF) is responsible for monitoring the international monetary system and providing policy advice, G20 members will also conduct discussions and communication through the IMF.

Multi-pronged approach to promote growth, preventive risks

In recent years, due to the divergence of the economic situation, different policy views and measures adopted by different countries have led to different views, resulting in the G20 not having too many breakthroughs in macroeconomic policy coordination. Since the beginning of this year, the global economic uncertainty has increased significantly. As the main cooperation platform of the international economy, the G20 must make a difference. To this end, China has intensively worked in major countries, coordinated the parties to unite under the common goal of promoting growth, seeking common ground while reserving differences, and building consensus, which ultimately led to the G20's commitment to “respectively and collectively use all policy instruments, including monetary, fiscal, and structural reform policies.” To "enhance confidence, maintain and enhance recovery." This consensus is the first major breakthrough in G20 coordination in macroeconomic policy in recent years, which has played a positive role in enhancing confidence and stabilizing the market.

At the same time, considering that the global economy is still facing downside risks, China is “preparing for the rain”, coordinating the G20 parties to strengthen the bottom line thinking, and pre-discussing the policy space that they can use in order to make timely and coordinated policy actions for the worst case. ready. With the joint efforts of all parties and the technical support of international organizations, this year the G20 made a comprehensive and objective assessment and discussion of the fiscal policy and monetary policy space of each member for the first time, and promised to "continue to study the G20 if necessary. Policy measures that suit national conditions to support growth and address potential risks."

Focus on promoting structural reform and actively improving growth strategy

While strengthening short-term policy coordination, China has also vigorously advocated strengthening structural reforms and has received wide support from all parties in the G20. Although the G20 also talked about structural reforms in the past, this year China has raised its discussion to a new level and strengthened its top-level design. At present, it has formed the "G20 Document on Deepening the Structural Reform Agenda", which mainly includes nine major structural reforms. Priority areas, 48 ​​guiding principles and a set of indicator systems for identifying policy gaps and monitoring progress in reforms.

At the same time, specific reform commitments will continue to be promoted through the implementation and renewal of the “all-round growth strategy” of each country. The 2014 G20 Brisbane Summit proposed an overall growth target of an additional 2% increase in G20 total output by 2018, with countries submitting growth strategies. Since then, the G20 members' annual new macroeconomic policies and structural reform commitments have been submitted in the form of growth strategy updates. After taking over as chairman, China will continue to work with all parties to improve and implement the growth strategy. According to preliminary statistics, the G20 has added and adjusted structural reform measures of about 350 this year, and the measures proposed since 2014 have reached about 1,650, covering investment, competition, employment and trade, and about half of them have been Get implemented.

Comprehensively outline the action plan and steadily promote supervision and accountability

Since the Cannes Summit in 2011, each G20 summit will pass an action plan named after the summit city, which incorporates the G20's commitment to achieve “strong, sustainable and balanced growth”, which is the leader's declaration. Specific implementation of the program. This year, the G20 Hangzhou Summit will release the "Hangzhou Action Plan". On the one hand, it will focus on the "multi-pronged" consensus, and transform the G20 members' "individual and joint use of all policy tools" into actual policy commitments. The internal coordination of the G20 working groups unifies the relevant policy recommendations of the various working groups under the shared vision of “strong, sustainable and balanced growth”. Therefore, this year's G20 action plan will not only focus on the joint efforts of fiscal, monetary and structural reforms, but also absorb the G20 international financial architecture, investment and infrastructure, trade and investment, green finance, inclusive finance, etc. The important policy commitments on a number of issues have finally come together as a comprehensive, comprehensive and clear plan of action.

On the other hand, the action plan needs to be complemented by an accountability mechanism to ensure that “speaking is imperative”. During China's presidency, it further strengthened the supervisory and accountability function of the G20 member mutual assessment mechanism, helping members to promote policy implementation in a more targeted manner. The 2016 Hangzhou Accountability Assessment Report, which is being drafted, will be positioned to continue to track the overall progress of the G20 in driving strong, sustainable and balanced growth around the world, and to analyze in detail the G20 commitments in areas such as fiscal policy, monetary policy and structural reform. The implementation progress.

Revitalize the vitality of trade investment and promote inclusive and shared growth

The slowdown in global trade growth and insufficient country investment are important challenges for the G20. This year, global trade has declined for the first time in years, and public and private sector investment remains weak. In this context, the parties undertook discussions on trade and investment issues under the topic of “strong, sustainable and balanced growth”, in-depth analysis of the causes and effects of global trade and investment slowdown, and discussed various policy options. . On this basis, the parties finally promised to “take further action to revitalize global trade and enhance investment”, and proposed specific measures to promote trade and investment in their respective growth strategy updates, and wrote the “Hangzhou Action Plan”.

On the other hand, China has always focused on inclusive growth to ensure that the G20's results in “strong, sustainable and balanced growth” benefit all social groups. To this end, China's coordination of the G20 has given new meaning to “strong, sustainable and balanced growth”. At the G20 Finance Ministers and Central Bank Governors' Meeting in July, the parties committed themselves to achieving “strong, sustainable, balanced and inclusive growth”. "The goal, with special emphasis on "growth results should be more widely shared within countries and countries to promote inclusiveness", and the G20 "will enhance inclusiveness in the pursuit of economic growth." To implement this commitment, many G20 members have submitted new inclusive growth measures through growth strategies, such as reducing employment barriers, improving education and skills training. The G20 also agreed to include an inclusive Gini coefficient and a “shared prosperity” index in the structural reform indicator system, and adopted important documents such as the G20 Digital Inclusive Finance Advanced Principles to expand the financial services channels for more people.

Since China assumed the G20 presidency, the global economy has experienced several rounds of financial market turmoil, which is a test of China's leadership, judgment, and mobility. At present, the global economic environment is still full of challenges and the downside risks persist. Under such circumstances, China will continue to plan carefully, carefully arrange and unite with G20 parties to effectively cope with short-term economic and financial risks, and lay a solid foundation for the medium- and long-term growth of the global economy, ensuring the success of the Hangzhou Summit, for the G20. The vision of strong, sustainable and balanced growth leaves the “China Seal”.

(transferred from Xinhuanet)

3. Open Market Business Transaction Announcement No. 145

People's Bank of China Monetary Policy Division

The People's Bank of China launched a reverse repurchase operation on Tuesday (August 16) by means of interest rate bidding. Details are as follows:

Reverse repurchase operation

the term

Trading volume

Winning interest rate

7 days

80 billion yuan

2.25%

People's Bank of China Open Market Operations Office

August 16, 2016

4. Hong Kong Monetary Authority: RMB liquidity support will be provided when necessary

Daily economic news

On the evening of August 16, the Hong Kong Monetary Authority issued a message saying that the Hong Kong Monetary Authority welcomed the opening of the Shenzhen-Hong Kong Stock Connect and the optimization of the "Shanghai-Hong Kong Stock Connect".

Chen Delin, President of the HKMA, said: Shanghai-Hong Kong Stock Connect has been operating smoothly since its launch in November 2014. Although the stock market and the foreign exchange market in the past two years have experienced large fluctuations, the exchange, liquidation and liquidity arrangements derived from the interconnection of the two stock markets have worked well, proving that this new mechanism can stand the test.

He also said that the launch of Shenzhen-Hong Kong Stock Connect has added a new channel for the interconnection of the two stock markets. This will further promote the cross-border movement of the renminbi and help strengthen Hong Kong's development as a global offshore renminbi business hub. With the launch of Shenzhen-Hong Kong Stock Connect, the HKMA will continue to closely monitor the market development and provide RMB liquidity support to the market when necessary.

5. The Bundesbank: The European Central Bank has not seen the economic threat of the Brexit to the Eurozone

World Wide Web

According to the Russian "satellite" news network on August 16, the German central bank announced in a report on the 15th that the ECB leadership concluded after the July meeting that the decision of the UK to leave the EU does not threaten the recovery of the euro zone.

The Bundesbank report said that the ECB Executive Council "confirmed that the expected basic economic recovery and the gradual increase in inflation remain unchanged."

The Bundesbank also expects that the German economy will show the largest growth in the euro zone during the summer.

6. The Bank of Japan will debate the underlying currency target in the September policy review

Hexun

According to foreign media reports, sources said that the Bank of Japan's next policy review meeting may debate the goal of expanding the base currency through large-scale asset purchases, but the problem is how to avoid frightening the bond market that has been accustomed to the central bank's unprecedented buying for many years.

The Bank of Japan announced last month a comprehensive assessment of its policies and its impact, triggering a sharp fall in the bond market, as investors fear that the central bank may be inclined to reduce public debt purchases. The central bank is worried that fewer and fewer policy tools are available.

7. The Bank of Japan turned into a "Tokyo whale"

Securities Times

In the history of Japan, the stock market crash in 1965 and the bubble burst in 1990, respectively, but the two Japanese governments are directly involved in the organization of the "national team" to intervene in the market. The Bank of Japan turned into a shareholder of a number of listed companies, which seems to bring short-term funds to the market, but it may leave US pension funds and other long-term investment institutions.

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