How has the sound monetary policy worked in the past year? What are the main policy ideas in the next stage? The People's Bank of China recently released the fourth quarter of 2022 China's monetary policy implementation report, responding to the above issues. The report proposes that a prudent monetary policy should be precise and effective. We will give full play to the effectiveness of monetary and credit policies, focus on stabilizing growth, employment and prices, and promote financial support for the real economy to achieve effective qualitative and quantitative growth. Maintaining a reasonable and stable growth of money and credit is an important basis for stabilizing the economy, employment and prices. The report points out that in 2022, the People's Bank of China will strengthen the implementation of prudent monetary policy and firmly support the stabilization of the macroeconomic market. The liquidity of the banking system is reasonable and sufficient. In 2022, the People's Bank of China will release liquidity in a comprehensive way by reducing reserve requirements, facilitating medium-term lending, refinancing, rediscount and open market operation. In April and December, the reserve requirement was reduced by 0.25 percentage points respectively, releasing a total of more than 1 trillion yuan of long-term liquidity. The balance profit turned over to the central government was 1.13 trillion yuan, and the scale of newly available funds provided to the whole society was equivalent to a comprehensive reduction of the reserve ratio of about 0.5 percentage points. At the end of 2022, the excess reserve ratio of financial institutions was 2.0%. Credit support for the real economy has been strengthened. According to the monetary policy analysis team of the People's Bank of China, since the second quarter of 2022, under the impact of the COVID-19 and the downward pressure of the economy, enterprises, especially small and medium-sized enterprises, have increased their operational difficulties, weakened their credit demand and slowed down their loan growth. The People's Bank of China promptly held a symposium on the analysis of the situation of money and credit to guide financial institutions to increase the strength of credit support to the real economy. According to the report, the credit line of policy-oriented development banks was increased by 800 billion yuan last year, and the People's Bank of China guided them to release 739.9 billion yuan of policy-oriented development financial instruments. At the end of 2022, the balance of local and foreign currency loans of financial institutions was 219.1 trillion yuan, an increase of 10.4% year on year, an increase of 20.6 trillion yuan over the beginning of the year, an increase of 496.9 billion yuan year on year. The People's Bank of China said that in the next stage, it would maintain a reasonable and stable growth of money and credit. We should comprehensively use various monetary policy tools to maintain reasonable and sufficient liquidity, and keep the growth rate of money supply and social financing scale basically matching the nominal economic growth rate. We will support financial institutions to meet the effective financing needs of the real economy in accordance with the principles of marketization and rule of law, and enhance the stability and sustainability of the growth of total credit. To maintain the financial support for small and micro enterprises on the basis of "stability", the People's Bank of China has innovated and used structural monetary policy tools to enhance the "momentum" for high-quality development. The report shows that at the end of 2022, the balance of national agricultural loans was 600.4 billion yuan, the balance of small loans was 1417.1 billion yuan, the balance of rediscount was 558.3 billion yuan, and the balance of mortgage supplementary loans was 3152.8 billion yuan. "In the past year, financial institutions have been actively guided to increase their support for the key areas, weak links and coordinated development of the national economy through the use of such tools as agricultural support, small loans, rediscount and mortgage supplementary loans." The Monetary Policy Analysis Group of the People's Bank of China said that in 2022, it will continue to