The supreme leader urged financial services to the real economy, and the new policy frequently made way for corporate profits.

　　China Net Finance March 4 (Reporter Hu Aishan) On the evening of February 29 on the eve of the two sessions, the central bank announced the RRR cut — — Since March 1, the RMB deposit reserve ratio of financial institutions has been lowered by 0.5 percentage point to maintain a reasonable and sufficient liquidity in the financial system, guide the steady and moderate growth of money and credit, and create a suitable monetary and financial environment for supply-side structural reform. This is the first RRR cut by the central bank this year.

　　2016 is the first year of the decisive stage of building a well-off society in an all-round way in China. The CPC Central Committee with the Supreme Leader as the general secretary holds high the banner of deepening reform, is brave in practice and is good at innovation, and points out the direction for the future economic development of China.

　　The financial industry plays an important role in economic development. The key areas of China’s economic construction, major projects and weak links such as small and micro, "agriculture, countryside and farmers" are all inseparable from the financial support.

　　On July 17, 2015, General Secretary of the Supreme Leader held a symposium of leading comrades of some provincial party committees in Changchun, pointing out: "It is necessary to improve financial services and dredge the channels for finance to enter the real economy, especially small and medium-sized enterprises and small and micro enterprises."

　　The speech of the Supreme Leader General Secretary pointed out the problems existing in the process of China’s financial development — — It is in the past that small and medium-sized enterprises faced the problem of financing difficulty and expensive financing in the development process. This "short board" has seriously restricted the healthy development of China’s economy.

　　It has been seven years since the outbreak of the international financial crisis, and the recovery of the world economy is still slow and the growth is still fragile. The important reason for the international financial crisis was that financial development gradually separated from the real economy. On September 5, 2013, General Secretary of the Supreme Leader pointed out at the G20 Summit that "we should continue to strengthen the supervision of the international financial market so that the financial system can truly rely on, serve and promote the development of the real economy."

　　The above speech by the Supreme Leader General Secretary pointed out the development direction of the financial system. Whether it is the world financial system or China financial system, it should be attached to the real economy, serve the real economy and promote its development.

　　To this end, the Central Economic Work Conference held at the end of last year pointed out that in order to reduce the financial costs of enterprises, the financial sector should create a policy environment of interest rate normalization and make profits for the real economy.

　　In the past 2015, China’s banking system has achieved remarkable results in serving the real economy, keeping the bottom line of risks and deepening reform and opening up.

　　In 2015, China added 11.2 trillion yuan of credit funds, 8.5 trillion yuan of wealth management funds, 6.1 trillion yuan of bond investment and 2.3 trillion yuan of trust funds, and revitalized more than 1 trillion yuan of existing loans through asset securitization and disposal of non-performing loans. The newly added and revitalized existing funds are mainly used to support key areas, major projects, small and micro, "agriculture, rural areas and farmers" and other weak links.

　　Last year, the China Banking Regulatory Commission formulated the development plan for inclusive finance, improved the overall policy framework for inclusive finance’s development, strengthened supporting policies for financial services in weak areas, and achieved the goal of "three no less than" loans for small and micro enterprises. By reducing fees and profits to reduce the cost of social financing, the fees charged by 21 national banks have been greatly reduced.

　　At the end of last year, the State Council issued the Plan for Promoting the Development of inclusive finance (2016-2020), which established the implementation strategy of inclusive finance at the national level for the first time. The plan points out that vigorously developing inclusive finance is an inevitable requirement for China to build a well-off society in an all-round way, which is conducive to promoting the sustainable and balanced development of the financial industry, promoting mass entrepreneurship and innovation, and boosting the transformation and upgrading of the economic development mode.

　　To this end, the China Banking Regulatory Commission proposed to further promote the reform and opening up of the banking industry in 2016. The concrete manifestations are: realizing the normalization of the establishment of private banks and expanding the channels and ways for private capital to enter the banking industry. Support private capital to participate in the restructuring of city commercial banks and rural small and medium-sized financial institutions. Support qualified private capital to initiate the establishment of consumer finance companies, financial leasing companies, enterprise group finance companies, auto finance companies and participate in the establishment of village banks.

　　In order to make the real economy enjoy lower financing costs, the central bank has implemented some monetary policies. According to the working paper "Macroeconomic Forecast of China in 2016" recently released by the central bank, since November 22, 2014, the central bank has cut interest rates and lowered the benchmark interest rate for one-year time deposits from 3.0% to 1.5%, and the benchmark interest rate for medium and long-term loans from 1 to 3 years from 6.15% to 4.75%.

　　Due to the adjustment of these policies and some directional control measures (including refinancing, targeted cuts to required reserve ratios, etc.), the risk-free interest rate and the financing cost of enterprises have dropped significantly. In addition, private lending rates and P2P lending rates also showed a downward trend.

　　On October 29, 2015, General Secretary of the Supreme Leader pointed out at the second plenary session of the Fifth Plenary Session of the 18th CPC Central Committee that "enterprises should make profits. The reason why an enterprise is called an enterprise is that it must make profits. Enterprises have no profits and large-scale losses, and they can’t survive after two or three years. That is not only a problem of slower speed, but also the income of employees and government finances, and it will bring financial risks and even social risks. Our policy base should be placed on enterprises, especially real economy enterprises, attach great importance to the healthy development of the real economy and enhance the profitability of the real economy. "