Press conference on the financial system's full support for epidemic control and production resumption

A press conference was held Saturday morning to explain the measures being taken by China's financial system to fully support control work for the COVID-19 (also known as novel coronavirus pneumonia) epidemic and production resumption. February 17, 2020

Hu Kaihong:

Due to the time limit, we will now have the last two questions.


My question is for Mr. Fan. Influenced by the current epidemic, both the supply and demand sides have been under great pressure, will this bring about pressures on inflation? What kind of measures will the People's Bank of China take to ensure that inflation, CPI and PPI will not surge? My second question is about non-performing loans. Will the epidemic bring about a surge of non-performing loans in the economic sector and how will the Chinese government curb it? Will efforts be made to prevent large-scale unemployment and a tide of bankruptcies?

Fan Yifei:

As for inflation, since restarting work and production requires a process, the demand side and other aspects all bring about pressure on the stability of prices. However, the premise of maintaining a prudent monetary policy has not changed and we will take adjustment measures that target these problems. I believe it is impossible for China to have large-scale inflation.

As for non-performing loans, Mr. Yan Qingmin and Mr. Liang Tao both mentioned that there would be some adjustments and non-performing loans are being allowed to increase to some extent. We have made preparations regarding this and I believe the problem can be solved through our efforts.

We have strengthened efforts to tackle financial risks over the past two years, with non-performing loans being one of the problems that we have faced. Generally speaking, China's rate of non-performing loans is relatively low. Compared with other countries, we can make relatively substantial adjustments to them, so I believe we can deal with this problem well.

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