NDRC: Seven Measures on Financial Macroeconomic Control are Carried Out

Firstly, we shall work out various contingency plans to guarantee the steady operation of finance and establish sophisticated monitoring and response mechanism to answer the International financial crisis; strengthen monitoring on the changes of international financial situations and lay emphasis on communication with other primary central banks; enhance information sharing and collaboration with the China Banking Regulatory Commission, the China Securities Regulatory Commission and the China Insurance Regulatory Commission, pay close attention to the operating situations of domestic financial institutions, and timely work out and improve the contingency plans to answer various emergency, so as to avoid and diminish the impact of the financial crisis to China. In addition, we shall improve China's financial supervisory system with focus on functional and in-advance supervision and control, so as to maintain the steady run of financial markets and financial system.
 

Secondly, we shall continue improving liquidity management, guarantee sufficient supply in the markets and offer guidance on reasonable release of currency and credit. Through keeping track of changes of the international balance of payments, we could flexibly utilize such policy-related tools as the open market operation and the rate of reserve against deposit, so as to maintain banks' liquidity within a reasonable level. In addition, the emergency response plans for the liquidity of banking system shall be worked out and improved, so as to answer any adverse impacts thereon that may incur in the International financial crisis.
 

Thirdly, we shall enhance window guidance and instruction on credit policies, optimize credit structure and lead financial institutions to further improve finance services by adjusting credit release according to the effective demands of entity economy. In the meanwhile, the total quantity adjustment shall be well integrated with the structural optimization. In the principle of sustainable development in commerce, credit support in the keynote economic fields and vulnerable points shall be strengthened, namely, the "Chinese three-dimensional rural issues concerning agriculture, countryside and farmers", employment, the service industry, small and medium-sized enterprises, self innovation, energy-saving and environmental protection, etc. In addition, monitoring and guidance on credit orientation shall be highlighted, so as to guarantee the credit orientation is in conformity with the requirements of credit policies.
 

Fourthly, financial supporting policies shall be worked out according to the progress of reconstruction after the earthquake catastrophe. In the principle of commercialization and risk control, financial institutions could be led to positively satisfy the demand on credit funds in the earthquake-hit areas. Also, feasible guiding suggestions on loans for reconstructing farm houses shall be studied and formulated, so as to satisfy peasant households' borrowing needs for reconstruction to the maximum extent via mechanism innovation. In addition, we shall enhance capital strength of rural credit associations in the earthquake-hit areas via the use of reloads for supporting agriculture, and enlarge the utilization scopes of the prime rate of interest thereof under in-depth research. In the meanwhile, the policy support for pilot reforms on acceptance of specific vouchers shall be carried out with effort.
 

Fifthly, monitoring on real estate finance shall be enhanced and the related financial services shall be improved. Specifically, the monitoring mechanism on real estate finance shall be established and improved, so as to keep close track of the development trends of real estate markets. The housing mortgage system shall be simplified and standardized, while the related loan policies on the residential building consumption shall be sorted out. Also, we shall guide commercial banks to scientifically assess risks in real estate. On the premise of improving risk control, we shall further improve financial services and support reasonable and effective credit demands in real estate, so as to promote smooth operations of credit markets in real estate.
 

Sixthly, the manipulative effect of price lever shall be enhanced and the reformation of market-oriented rate and exchange rate forming mechanism shall be carried forward. We could effectively implement regulation and control by virtue of price tools, such as interest rates, so as to stabilize market anticipation. In addition, the systematic construction of ruling rate of interest in the currency market shall be strengthened, so as to make markets play a crucial role in the determination of interest rates. In order to maintain basic stabilization of Renminbi rate, we shall continue improving the forming mechanism of Renminbi rate and enhance elasticity of exchange in the principle of initiative, controllability and incrementality; also, we shall aggressively promote the development of foreign exchange markets and enrich management tools in risk control of rate.
 

Seventhly, we shall enhance foreign exchange management and guard against the impact of short term capital movement to China's financial system. Specifically, the monitoring management on cross-border capital flow shall be strengthened, and measures on the management of capital with different inflow and outflow channels shall be improved, so as to guard against tremendous shot on our economy due to the flow of venture capital in a massive manner. Also, risk prompt and supervision on foreign investment shall be strengthened, and the related investment system shall be improved towards plurality and multi-laterality; capital account shall be steadily made convertible.