The People's Bank of China Photo: VCG

China will maintain the stable operation of its stock, bond and foreign exchange markets and prevent systemic financial risks, Pan Gongsheng, governor of the People's Bank of China (PBC), the central bank, said on Tuesday.

Pan made the remarks while presenting a report on the country's financial work since October 2025 on behalf of the State Council at the 25th session of the Standing Committee of the 14th National People's Congress, China's top legislature, on Tuesday. 

According to the report, the country will also further strengthen and improve financial regulation, continuously enhance regulatory effectiveness, improve the alignment of financial services with the needs of the real economy, accelerate the development of a modern, multilayered financial market system to support economic restructuring and upgrading and high-quality development, and steadily deepen financial reform and high-level opening-up while safeguarding national financial security.

The report also called for making good use of monetary policy tools designed to support the capital market and consolidating and improving mechanisms aimed at maintaining market stability, while safeguarding national financial security and preventing systemic financial risks.

On financial risk prevention and resolution, the report outlined progress in addressing potential financial risks, including efforts to prudently resolve risks involving small and medium-sized financial institutions.

The report highlighted the financial sector's support for the real economy. From October 2025 to September 2026, new aggregate social financing in China totaled 33 trillion yuan ($4.96 trillion). During the period, 88 companies launched initial public offerings on the Shanghai and Shenzhen A-share markets, raising a combined 247.2 billion yuan, with nearly 90 percent of them being high-tech enterprises.

The remarks came as the PBC, together with the National Financial Regulatory Administration and the China Securities Regulatory Commission, stepped up efforts to optimize two policy tools supporting the capital market, including making the stock repurchase and shareholding increase relending program a long-term institutional arrangement and lowering its relending interest rate.

On Tuesday, the PBC conducted a 100-billion-yuan operation under the Securities, Funds and Insurance Companies Swap Facility (SFISF), following requests from participating institutions. A total of 31 securities firms and fund management companies participated in the bidding, with the winning fee rate set at 10 basis points, according to an official announcement by the central bank.

The latest operation comes against a backdrop of recent fluctuations in China's stock market.

The operation reflects China's continued efforts to support a stable stock market, Li Chang'an, a professor at the Academy of China Open Economy Studies at the University of International Business and Economics, told the Global Times on Monday.

Global Times