China will maintain a dynamic balance between stabilizing growth and preventing risks while orderly addressing vulnerabilities in key sectors, central bank governor Pan Gongsheng said on Friday.
Speaking at a press conference on economic affairs during the fourth session of the 14th National People's Congress, Pan noted that the country's financial system remained generally sound over the past year, with major indicators significantly above regulatory standards.
As of the end of 2025, commercial banks' capital adequacy ratio stood at 15.5 percent and non-performing loan ratio at 1.5 percent, while insurers' comprehensive solvency ratio reached 181 percent, all reflecting strong risk resilience, he said.
"In the foreign exchange market, the Chinese yuan appreciated by nearly 4.5 percent against the U.S. dollar in 2025, broadly in line with the mid-range of major global currencies. In the bond market, yields fluctuated within a reasonable range, with the 10-year government bond yield stabilizing around 1.8 percent, keeping corporate financing costs low. In the capital market, China's stock market outperformed many of its global peers in 2025. Hong Kong's H-shares also performed well, with the Hang Seng Index rising by over 27 percent last year," Pan said.
Significant progress has also been made in resolving key risks. Compared with early 2023, the number of local government financing platforms and their debt scale had both declined by over 70 percent by the end of last year. The number of high-risk small and medium-sized financial institutions has dropped by half from its peak.
Looking ahead, Pan outlined five priorities for the central bank in maintaining financial stability through 2026.
The first priority is to maintain a dynamic balance between economic growth and risk prevention.
Building on this foundation, the central bank will work to orderly address vulnerabilities in key sectors, with a continued focus on resolving local government financing platform debt and mitigating risks associated with small and medium-sized banks.
A third objective is to safeguard the stable operation of financial markets, Pan noted.
"In the capital market, we will work with the securities regulator to effectively implement structural monetary policy tools in support of the market. We will support Central Huijin Investment in playing a role akin to a 'stabilization fund,' so as to enhance the capital market's inherent stability," Pan said.
The PBOC is also exploring mechanisms to provide liquidity support to non-bank institutions under certain conditions.
Additionally, it will guard against external shocks by closely monitoring global risks and using macroprudential tools to contain contagion amid growing geopolitical and economic uncertainty.
Efforts will also be made to strengthen the financial stability guarantee system through enhanced monitoring and legislative revisions.
"We will advance legislative efforts, including the formulation of the Financial Stability Law and amendments to the People's Bank of China Law. Efforts will also be made to strengthen the monitoring, assessment, and early warning of financial risks, ensuring timely detection, prompt warning, swift exposure, and decisive resolution," Pan said.
China's central bank governor outlines five priorities for financial stability in 2026
NPC Deputies from east China's Jiangsu Province vowed to make greater contributions to the overall development of the nation after Chinese President Xi Jinping joined them in group deliberations on Thursday.
Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, took part in the deliberation with his fellow deputies from Jiangsu during the fourth session of the 14th National People's Congress (NPC), China's national legislature.
During the discussions, deputies from various sectors shared their experiences and spoke on a wide range of topics, including agriculture, technological and industrial innovation, education and talent training, and rural governance.
"I felt extremely excited today to be able to meet face-to-face with the General Secretary and report to him on Huai'an's economic and social development over the past two years. In recent years, we have vigorously cultivated the development of the crayfish industry in line with the requirements for developing local specialty products. In Xuyi County, one-sixth of the population is engaged in this profession. When I reported to the General Secretary a moment ago, I shared some good news with him. The 'Xuyi No. 1' crayfish has achieved growth of more than 18 percent in both yield per mu (about 0.067 hectare) and individual weight. Crayfish farming has provided more employment opportunities for our labor force and promoted income growth for residents," said Shi Zhijun, secretary of the CPC Huai'an Municipal Committee.
"I reported to the General Secretary on the integration of technological innovation and industrial innovation. The General Secretary attached great care for Soochow University. For our emerging industries and future industries, one important focus is developing commercial aerospace. We are now working together with industry partners to address this issue, hoping that Soochow University will achieve coordinated development with Suzhou's social economy in the future, and make greater contributions particularly to developing new quality productive forces," said Zhang Xiaohong, Party Secretary of Soochow University.
"I reported to the General Secretary on the achievements our team has made in breeding wheat resistant to Fusarium head blight. We have successively developed highly resistant varieties including Yangmai 33 and Yangmai 53, covering two directions of high-quality wheat development. Chinese bowls must be filled with Chinese grain. We must continue our efforts to ensure stable growth of national grain production and guarantee food security," said Gao Derong, a researcher at the Institute of Agricultural Sciences for Lixiahe Region under the Jiangsu Academy of Agricultural Sciences.
"Today, I feel extremely honored and excited to report to the General Secretary on the changes and development of our Desheng Village over the years. The General Secretary inquired about Party organization building, industrial development, social development, and environmental governance. For rural areas, we must first develop industries so that people can benefit substantially from this process. Meanwhile, the building of civilized rural customs must be advanced in parallel," said Yang Hengjun, head of Desheng's village committee.
In the deliberation, Xi has called on economic powerhouses like Jiangsu to redouble efforts to gain experience in analyzing new situations and solving new problems.
Deputies say they will implement the General Secretary's instructions and strive to make new achievements. "Today, the General Secretary, on the one hand, spoke positively of Jiangsu's contributions as an economic powerhouse, shouldering heavy responsibilities during the 14th Five-Year Plan period. On the other hand, he put forward new requirements for Jiangsu in terms of developing new quality productive forces in line with local conditions to enhance economic resilience, and in continuously strengthening common prosperity for the people. As an NPC deputy, I will earnestly study and implement the General Secretary's important instructions upon my return, so that Huai'an's modernization process can advance on a more solid foundation," Shi said.
"Universities, especially research universities, as national strategic scientific and technological forces, must do well in basic research and application. As an important base for talent cultivation, we must establish mechanisms for integrated development of education, science and technology, and talent, and cultivate top innovative talents. We will implement the General Secretary's instructions through these efforts," Zhang said.
NPC deputies from Jiangsu vow to make greater contributions in national development
