During the 18th Asian Financial Forum held in Hong Kong on January 13, 2025, Governor Pan Gongsheng of the People's Bank of China (PBOC) announced plans for more proactive macroeconomic policies aimed at stimulating consumption and supporting economic growth.

Pan emphasized the critical role of consumption as a driver for China's economic growth, particularly in the context of high-quality development.

To boost consumption, the government will implement key measures such as increasing household incomes, providing consumption subsidies, innovating consumer supply systems, and enhancing social security.

China's macroeconomic strategy is shifting from a heavy reliance on investment to a more balanced approach that prioritizes both consumption and investment.

The new energy vehicle (NEV) industry in China has surpassed annual production and sales of 10 million units, with a focus on high-quality growth and new investments.

The China Association of Automobile Manufacturers (CAAM) projects that NEV production and sales will reach approximately 16 million units by 2025, reflecting a year-on-year growth of around 23%.

Xiaomi has set an ambitious annual delivery target of 300,000 vehicles for 2025, focusing on enhancing efficiency and automation in its production processes.

GAC Aion, recognized as a 'lighthouse factory', plans to launch eight new NEV models in 2025, with anticipated growth rates exceeding 50%.

Government policies are increasingly supportive of the NEV industry, featuring increased subsidies for vehicle replacements and mandates for government procurement of new energy vehicles.

On the topic of exchange rate stability, Pan highlighted the market's role in determining the RMB exchange rate, advocating for it to function as an automatic stabilizer for macroeconomic balance.

Pan outlined a moderately loose monetary policy designed to ensure ample liquidity in the market through mechanisms such as interest rates and the reserve requirement ratio.

The PBOC, along with the Hong Kong Monetary Authority (HKMA) and other regulators, is collaborating to enhance the offshore RMB market and streamline cross-border financial systems.