Zou Lan of the People's Bank of China: Enhancing the Utility of Two Tools to Bolster the Capital Market
2025-01-14

At a press conference, Zou Lan, Director of the Monetary Policy Department at the People's Bank of China (PBOC), emphasized that the capital market serves as both a barometer of confidence and a pivotal conduit for allocating financial resources, intrinsically tied to economic growth. The two instruments introduced by the PBOC to support the capital market adhere to principles of market-orientation and legality, empowering listed companies and industry institutions to independently determine the timing and magnitude of stock purchases in response to market dynamics. This approach facilitates the market's selection process. When stocks are undervalued, major shareholders of listed companies and securities firms, driven by self-interest, will likely utilize low-cost incremental funds to repurchase or augment their stock holdings. Building on past success, the PBOC will persistently refine the design of these tools and institutional frameworks, enhancing their ease of use and ensuring that relevant enterprises and institutions can promptly access sufficient funds to augment their investments as needed.