The People's Bank of China released the "China Financial Stability Report" to improve macro-prudential management of real estate finance

The People's Bank of China recently released the "China Financial Stability Report (2025)", mentioning that during the "14th Five-Year Plan" period, China's development environment faces profound and complex changes. China is in a period where strategic opportunities coexist with risks and challenges, and the number of uncertain and unpredictable factors is increasing. The foundation of the Chinese economy is stable, with many advantages, strong resilience, and great potential. The long-term supportive conditions and basic trends remain unchanged, and the advantages of the socialist system with Chinese characteristics, the advantages of a super-large-scale market, the advantages of a complete industrial system, and the advantages of abundant human resources are becoming more prominent.

In the next step, we will implement the deployment of the Central Economic Work Conference and the Central Financial Work Conference, coordinate the overall domestic and international situations, fully and accurately implement the new development concept, accelerate the construction of a new development pattern, adhere to the general tone of seeking progress while maintaining stability, implement more proactive macro policies, increase counter-cyclical and cross-cyclical adjustments, continuously prevent and resolve risks in key areas, and achieve a good start for the "14th Five-Year Plan". Promoting stable economic growth and a reasonable recovery in prices will be important considerations for monetary policy, maintaining ample liquidity, and promoting low comprehensive financing costs in society. We will uphold the decisive role of the market in the formation of exchange rates, maintain exchange rate flexibility, strengthen expectation guidance, prevent excessive exchange rate adjustments, and keep the RMB exchange rate basically stable at a reasonable and balanced level.

We will solidly implement the "five major tasks" in finance, vigorously develop technology finance, green finance, inclusive finance, pension finance, and digital finance, and strengthen support for major national strategies and key areas and weak links in economic and social development. We will improve a comprehensive macro-prudential management system, enhance the monitoring and assessment of systemic financial risks, and strengthen macro-prudential management in key areas. We will prevent and resolve financial risks in key areas, firmly promote the resolution of debt risks for financing platforms supported by finance, actively and prudently handle risks in small and medium-sized financial institutions, ensure proper macro-prudential management of real estate finance, and firmly uphold the bottom line of preventing systemic financial risks