(Yicai) Nov. 11 -- The People’s Bank of China will promote the implementation of recently introduced stimulus measures such as the Securities, Funds and Insurance companies Swap Facility, which gives non-bank financial institutions access to funding to buy shares, as well as stock repurchases to promote stable economic growth and stimulate market vitality, the central bank said in its latest monetary policy report.

Going forward, the central bank will maintain the stability of refinancing and rediscounting measures and will continue to implement existing special refinancing tools by leveraging the guiding role of monetary and credit policies, according to its third-quarter monetary policy report released on Nov. 8. In addition, the PBOC will increase support for trade-ins of consumer goods to keep stimulating consumer vitality.

The PBOC will also promote the implementation of incremental policies in real estate finance, support financial institutions in strengthening financial safeguards, facilitate stabilization of the property market, and establish a new model for real estate development, the report said.

In terms of credit and bond financing, the central bank will manage the relationship between these two markets, maintain adequate liquidity, and guide balanced growth in credit extension. At the same time, it will improve the formation and transmission of market-based interest rate mechanisms, enhance the ability of financial institutions to autonomously and rationally set prices, and reduce financing costs for businesses and the cost of borrowing for individuals.

The central bank will deepen financial system reforms, improve the central banking system, and enhance the monetary policy framework. In terms of exchange rates, it will adhere to a managed floating exchange rate system, prevent the formation of unilateral consensus expectations, and maintain the stability of the Chinese yuan exchange rate at a reasonable and balanced level.

In addition, the central bank will improve the legal framework of the bond market, enhance its pricing function and market robustness, promote the opening up of the bond market to foreign investors, and steadily and prudently advance the internationalization of the Chinese yuan.

Finally, the central bank emphasized that it will actively prevent financial risks by improving the macroprudential policy framework, enhance the ability to monitor, assess, and warn against systemic risks, and ensure the robust development of the financial markets. These measures will help promote the high-quality development of China's capital markets, providing strong support for stable economic growth.

Editor: Kim Taylor