We need to strengthen the dual regulation of both total quantity and structure, activate stock, and improve efficiency; Promote stable and moderate reduction in the cost of comprehensive social financing. Monetary policy continues to maintain a stable tone. Premier Li Qiang proposed in his government work report on the 5th that a prudent monetary policy should be flexible, moderate, precise, and effective. Maintain reasonable and sufficient liquidity, and ensure that the scale of social financing and money supply match the expected goals of economic growth and price levels. The report also proposes to facilitate the transmission mechanism of monetary policy and avoid the accumulation and idle transfer of funds. Enhance the inherent stability of the capital market. Maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. The Chief Economist of CITIC Securities clearly told First Financial that monetary policy first emphasizes reasonable and sufficient liquidity to support financing for the real economy. The matching of social financing scale and money supply with economic growth and price expectations will drive the continued recovery of growth and price levels this year. At the same time, the addition of a new term on enhancing the inherent stability of the capital market will help further boost market confidence. Structural credit tools may further introduce government work reports, proposing to strengthen the dual adjustment of total quantity and structure, activate stock, improve efficiency, and increase support for major strategies, key areas, and weak links. Promote stable and moderate reduction in the cost of comprehensive social financing. This is the latest adjustment of monetary policy this year. Lian Ping, President and Chief Economist of Guangkai Chief Industry Research Institute, and Chairman of the China Chief Economist Forum, predicts that in 2024, monetary policy that should be relaxed still needs to be relaxed, and what should be tightened still needs to be tightened. The key is to grasp the "degree": neither too loose nor too tight, and always maintain its stability. Essentially, the orientation will be "steady and loose", maintaining a degree of expansion that matches fiscal policy. The five major chapters of finance are the main directions of monetary and credit policies. The report proposes to vigorously develop technology finance, green finance, inclusive finance, pension finance, and digital finance. Optimize supporting measures such as financing, credit enhancement, risk sharing, and information sharing to better meet the financing needs of small and medium-sized enterprises. "It is possible to further introduce structural credit tools to support development. The total amount and structure are the two driving points of monetary policy, and revitalizing the stock also helps to improve the efficiency of credit increment." Mingming said. Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, believes that in terms of policy tools, it is expected that the central bank will continue to "aggregate+structural tools+reform measures", continue to create a suitable monetary environment for economic recovery, and form a joint force with fiscal and other policies to promote economic structural transformation and upgrading while promoting steady economic recovery. Enhancing the Consistency of Macro Policy Orientation In terms of enhancing the consistency of macro policy orientation, the report proposes to focus on the overall development situation, strengthen the coordination and cooperation of policies such as finance, currency, employment, industry, region, science and technology, and environmental protection. Non economic policies should be included in the evaluation of macro policy orientation consistency, and policy coordination should be strengthened to ensure joint efforts and formation. The report emphasizes the implementation of policies
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