A worker assembles an engine at a machinery manufacturing enterprise in Qingzhou, East China's Shandong Province, on September 15, 2025. China's industrial added-value for companies above the designated size increased by 5.2 percent year-on-year in August, official data showed. Photo: VCG

China will continue to implement a moderately loose monetary policy and strengthen financial support for key areas such as expanding domestic demand, technological innovation, and small and medium-sized enterprises (SMEs), a senior Chinese official said on Friday, according to the Xinhua News Agency. 

He Lifeng, who is a member of the Political Bureau of the Communist Party of China (CPC) Central Committee and director of the Office of the Central Commission for Financial and Economic Affairs, made the remarks at a national-level financial system work conference in Beijing. 

It is necessary to continue to focus on preventing and resolving risks of local small and medium-sized financial institutions, financial risks of real estate enterprises, and financial debt risks of local government financing platforms, controlling new risks, handling existing risks, preventing "defaults" and cracking down on illegal financial activities, He said. 

It is necessary to further consolidate and strengthen financial supervision, improve the regulatory system in key areas and strictly implement it, strengthen the compliance awareness and risk awareness of financial institutions, continuously improve regulatory capabilities, and carry out accountability for financial risks, He said. 

It is necessary to go all out to promote high-quality development, implement a moderately loose monetary policy, strengthen financial support for key areas such as expanding domestic demand, technological innovation, and small and micro enterprises, steadily and orderly promote financial reform and opening up, and do a good job in expectation management, He noted.

The annual Central Economic Work Conference was held in Beijing from Wednesday to Thursday as Chinese leaders decided priorities for the economic work in 2026, according to Xinhua. 

China will continue to implement a moderately loose monetary policy, employ various monetary policy tools such as reserve requirement ratios and interest rates in a flexible and efficient manner to maintain ample liquidity, the meeting said. 

China will guide financial institutions to scale up support for domestic demand expansion, sci-tech innovation, micro-, small and medium-sized enterprises, and other key areas, according to the meeting. 

Global Times