The keynote speech by Pan Gongsheng, Governor of the People's Bank of China, at the 2026 China Development High-Level Forum.

The People's Bank of China will adhere to a supportive monetary policy stance, creating a favorable monetary and financial environment for stable economic growth, high-quality development, and smooth operation of the financial markets. We will continue to implement a moderately loose monetary policy. Currently, China's social financing conditions are loose, and financial aggregate is growing reasonably. We will balance the relationship between short-term and long-term, supporting real economic growth while maintaining the health of the financial system, internal and external balance, and comprehensively utilize various monetary policy tools such as reserve requirement ratio, policy rates, open market operations, to maintain ample liquidity. According to the classification standards of the International Monetary Fund, China implements a managed floating exchange rate system. Since the beginning of this year, the renminbi has appreciated by about 1.3% against the US dollar, 3.7% against the Euro, 3.2% against the Japanese Yen, and 2.4% against the British Pound. China has no need, nor intention, to gain trade competitive advantage through currency devaluation. The People's Bank of China's position is always clear, adhering to the decisive role of the market in determining exchange rates, maintaining exchange rate flexibility, while strengthening expectation guidance, and keeping the renminbi exchange rate stable at a reasonable equilibrium level. The People's Bank of China's expectation guidance and transparent, internationally compliant macro-prudential management tools help correct market "herd behavior" and market failures, preventing destructive imbalances that have occurred repeatedly in international financial history. We will steadily promote the high-level opening-up of the financial industry. Deepen the interconnection of financial markets, cross-border interconnection of payment systems, and facilitate more investors to invest in the Chinese financial markets. China's stock and bond markets are both the second-largest in the world, with market depth, resilience, and liquidity continuously improving. By the end of 2025, overseas institutions and individuals will hold over 10 trillion yuan of domestic stocks, bonds, deposits, and loans denominated in the renminbi. We welcome overseas investors to participate in and invest in the Chinese financial markets. In recent years, the internationalization of the renminbi has made positive progress, providing a more diversified currency choice for domestic and foreign entities. Currently, the financing cost of the renminbi is relatively low. By 2025, panda bonds issued by multiple countries governments, international development agencies, financial institutions, and large enterprises exceeded 170 billion yuan, while the offshore renminbi bonds issued in Hong Kong were even larger. We will continue to improve the arrangements for the cross-border use of the renminbi and the construction of financial infrastructure. Conduct diversified currency and financial cooperation, promote the development of the offshore renminbi market, and facilitate cross-border trade and investment activities.