On December 26, the People's Bank of China released the "China Financial Stability Report (2025)." The report indicates that the financial system has adhered to the centralized and unified leadership of the Party Central Committee over financial work. Following the decisions and deployments of the Party Central Committee and the State Council, it has upheld the general principle of pursuing progress while ensuring stability, balanced development and security, strengthened counter-cyclical adjustments, actively prevented and resolved risks in the financial sector, and effectively safeguarded financial stability and security. Firstly, efforts to support the real economy with finance were intensified. The reserve requirement ratio was lowered twice in 2024 by a total of 1 percentage point, maintaining reasonably ample liquidity. Policy interest rates were lowered twice by a total of 0.3 percentage points, guiding down deposit and lending rates as well as overall social financing costs. The policy system for financial support in areas such as technology, green development, inclusive finance, pensions, and digital economy was improved, and a comprehensive statistical system for the "Five Major Areas of Finance" was established.

Secondly, active work was done to support the resolution of debt risks for financing platforms. A series of policies for financial support in resolving financing platform debt risks were promoted, a statistical monitoring and inquiry system for financing platform debt was established, and the standardized and orderly exit of financing platforms was facilitated. Thirdly, support was provided for the stable and healthy development of the real estate market. Minimum down payment ratios for mortgages were lowered, the national floor on mortgage interest rate policies was removed, interest rates on housing provident fund loans were reduced, efforts were made to lower existing mortgage rates, relending facilities for affordable housing were established, the financial policy system for housing rental was improved, and the acceleration of a new model for real estate development was promoted.

Fourthly, the central bank's functions for maintaining financial market stability were further expanded. Based on market principles, two new instruments were created: a swap facility for securities companies, fund companies, and insurance companies, and a relending tool to support share buybacks and increased holdings, thereby supporting the stable development of the capital market. Risk warnings were issued regarding long-term government bond yields, communication with the market was strengthened to prevent potential market risks from a one-sided decline in long-term bond yields. The dual-pillar management framework of "macro-prudential assessment + micro-level supervision" for the foreign exchange market was enhanced, effectively maintaining its stable operation.

Fifthly, risk disposal for key institutions and regions was steadily advanced. Through coordination between the central and local governments, reforms and risk mitigation for local small and medium-sized financial institutions progressed orderly under a "one province, one policy" approach. Adhering to market-oriented and rule-of-law principles, risks in small and medium-sized banks were addressed through various methods such as mergers, reorganizations, and market exits, leading to a significant reduction in the number of high-risk small and medium-sized banks. Sixthly, the construction of a financial stability safeguard system was promoted. The legislative process for the Financial Stability Law and the revision of the "Law of the People's Bank of China" were accelerated. Resources for risk disposal were continuously strengthened, the collection of deposit insurance fund premiums and the fundraising for the financial stability guarantee fund proceeded orderly, and efforts were made to improve the management rules for the financial stability guarantee fund to better support the resolution of risks in high-risk institutions. Currently, China's financial sector is operating with overall stability, financial risks are generally contained and controllable, and the operational and regulatory indicators of financial institutions are within a reasonable range.