China Merchants Securities Xie Yaxuan: Finance helps the real economy recover steadily

BEIJING, Oct. 18 (Huazhuoma) On the 18th, the National Bureau of Statistics announced the "report card" of China's economy in the third quarter. China News Service held the "National Forum: Economic Situation Analysis Meeting in the Third Quarter of 2023" on the same day to analyze China's economic operation.

Xie Yaxuan, Deputy Director of China Merchants Securities Research and Development Center, attended the "National Forum: Economic Situation Analysis Meeting in the Third Quarter of 2023" to analyze the current economic situation. Photographer: Wang Lichen

Xie Yaxuan, deputy director of China Merchants Securities Research and Development Center, said at the analysis meeting that from the financial data of the first three quarters of this year, finance has shown outstanding performance in helping the real economy recover steadily.

Xie Yaxuan said that financial support for the steady recovery of the real economy is inseparable from the operation of monetary policy on the one hand, and from the strong support of government departments to expand credit on the other hand. From the perspective of monetary policy operation, financial data can achieve a reasonable and sufficient amount of liquidity and reduce the burden of residents, which is closely related to the monetary policy operation of the People's Bank of China to cut reserve ratio and interest rates this year. Since this year, the People's Bank of China has made comprehensive use of various monetary policy tools to precisely inject liquidity. In the first three quarters, the RRR has been lowered twice, 0.25 percentage points each time, and the deposit reserve ratio has been lowered by 0.5 percentage points accumulatively, providing strong support for credit expansion and social financing growth.

At the interest rate policy level, especially since late August, the People's Bank of China has implemented a series of interest rate policies, which play a positive role in promoting consumption, stabilizing investment and expanding domestic demand.

He further said that behind the financial support for the real economic data, the support role of government departments in actively expanding credit is also indispensable. From the perspective of on balance sheet social finance in September, on balance sheet credit increased by 2.5 trillion yuan that month, and government bonds increased by 994.9 billion yuan, which together accounted for 85.7% of the increase in social finance in that month. In general, the increase in the issuance of government bonds, especially government bonds, since August and September is the main reason for the year-on-year increase in social financing in September. It can be seen that in the current economic and financial situation, the expansion of government credit has played a significant supporting role in financial support of the real economy.

Xie Yaxuan said that looking forward to the fourth quarter, the additional issuance of government bonds will further support the growth of social finance. It is expected that the annual increase of social finance will reach about 35 trillion yuan. The financial data represented by social finance will undoubtedly continue to play a strong role in supporting the recovery of the real economy. (End)

key word: Real economy Xie Yaxuan government bonds China Merchants Securities school report