Central Bank: Implementing Moderately Loose Monetary Policy According To The New Situation

In June 8, 2010, the people's Bank of China issued the "2009 China regional financial operation report". The report pointed out that 2010 is the key year to continue to cope with the international financial crisis, maintain stable and rapid economic development, and accelerate the pformation of the mode of economic development.

According to the new situation and new situation, the central bank will carry out moderately loose monetary policy and speed up the pformation of economic development mode and economic structure, so as to maintain steady and rapid economic development.

Financial support for economic restructuring

The central bank pointed out that the foundation for domestic demand recovery is still not stable, the endogenous driving force of economic growth needs to be enhanced, and the capability of independent innovation needs to be further improved. The task of continuously expanding household consumption, promoting the optimization of economic structure and achieving the goal of energy saving and emission reduction is still arduous. The potential risks in the financial and financial field can not be ignored. Uncertainties in the international sovereign debt crisis, trade frictions and the withdrawal of stimulus policies in various countries will also have an important impact on the development environment of our foreign ministry.

Financial institutions in various regions should increase financial support for the pformation of the mode of economic development and the adjustment of economic structure, and adjust and optimize the credit structure.

We should increase credit support for weak links in the economic and social sectors, employment, energy conservation, environmental protection, strategic emerging industries, industrial pfer and other aspects, effectively alleviate the financing difficulties of agriculture and small enterprises, ensure the loan needs of key construction projects, and strictly control loans to high energy consumption, high emission industries and overcapacity industries.

The central bank also stressed the need to implement differentiated housing policies to promote healthy and stable development of the real estate market.

We should strengthen the loan risk management of local financing platform companies, maintain a sound financial system, guard against systemic risks, and enhance the ability of financial support for economic development.

Net cash withdrawal in central region only

The central bank pointed out that the cash flow in 2009 was significantly different due to the different economic development characteristics of different regions. The eastern, Western and northeast regions were net cash flows, and the central region was net cash withdrawal.

Cash delivery in the eastern region is relatively concentrated, with a net investment of 466 billion 130 million yuan a year.

In the western region, the total net cash in investment was 52 billion 880 million yuan, a year-on-year increase of 291%.

The three provinces in Northeast China showed a net cash supply, but the cash expenditures of agricultural and sideline products were significantly reduced compared with the previous year. Net invested funds fell by 26% over the same period last year, to 39 billion 230 million yuan.

The central region is affected by factors such as income and repatriation of migrant workers. It is the only net cash withdrawal area in the country. The net cash withdrawal is 149 billion 210 million yuan, an increase of 31% over the same period.

Except for Shanxi, the rest of the provinces are net cash withdrawal.

The four provinces of Anhui, Jiangxi, Henan and Hunan have net cash withdrawal of more than 30 billion yuan.

Eastern bank assets accounted for 61%

According to the regional perspective, the number of banking financial institutions in the eastern region, the total number of employees and assets accounted for the highest proportion in the whole country. Among them, the total assets of Guangdong, Beijing, Shanghai, Jiangsu, Zhejiang and Shandong accounted for more than half of the total assets of the whole country, and the banking assets in the eastern region accounted for 61% of the total in the whole country.

In terms of growth rate, the total assets of the banking sector in the eastern, central, Western and northeast regions increased by 26.4%, 25.6%, 31.6% and 28.6% respectively.

In 2009, the scale of assets of the rural credit cooperatives increased rapidly.

At the end of the year, total assets amounted to 8 trillion and 100 billion yuan, up by 14.2% over the same period last year.

The total assets of rural credit cooperatives in the eastern, central, Western and northeast regions increased by 13.6%, 10.1%, 20.1% and 13.9% respectively.

Various types of new rural financial institutions including microfinance companies, village banks, loan companies and rural mutual cooperatives have accelerated development, improved the coverage rate of rural financial services, and alleviated the problem of insufficient financial services in rural areas.

Loans are the main source of real estate development.

Central Bank report pointed out that in 2009, the total investment in real estate development was 3 trillion and 600 billion yuan, an increase of 16.1% over the same period last year.

From the source of funds, in 2009, the capital of the real estate development enterprises became more relaxed, and the national real estate development fund was 5 trillion and 700 billion yuan, an increase of 44.2%, of which other funds, mainly based on earnest money and earnest money, grew by 71.9% compared with the same period last year. Domestic loans increased by 48.5% over the same period last year, which constituted the main source of capital for real estate development investment.

At the end of 2009, the balance of commercial real estate loans of major financial institutions in the country was 7 trillion and 300 billion yuan, an increase of 38.1% over the same period last year. The growth rate was 27.7 percentage points higher than that of the same period last year, which was 6.7 percentage points higher than that of the same period.

Central note financing growth is particularly prominent.

From the point of view of regional financing, the eastern, central, Western and northeastern regions increased by 44.8%, 164.8%, 10.1% and 18.8% respectively in 2009. The growth of note business in the central region was more prominent, and the proportion in the regional distribution increased significantly.

Apart from Beijing, Anhui, Sichuan, Tibet, Inner Mongolia, five provinces (districts and cities), the weighted average interest rates of commercial acceptance bills in other provinces of the whole country are significantly higher than the weighted average discount rates of bank acceptance bills, especially in Guizhou, Hunan, Jilin, Shandong, etc. there is little difference in the interest rate of negotiable instrument discount market, but the average weighted interest rates of buyout and buyback are higher than those of other regions in the same period.