China ‘confident’ in 2025 economic rebound, Hong Kong is key: central bank chief

China has the confidence, capacity and tools to ensure its economy recovers and grows this year, the country’s central bank chief said on Monday, pledging supportive monetary tools, measures to stem property market risks and tighter financial links between the mainland and Hong Kong.

Facing stubbornly weak domestic consumption and potential headwinds from US president-elect Donald Trump, China will consider cutting interest rates and the reserve requirement ratio “to ensure ample liquidity and maintain a supportive environment” for lending, People’s Bank of China governor Pan Gongsheng said during a 20-minute speech at the annual Asian Financial Forum in Hong Kong.

Beijing could also adjust and increase fiscal spending, he said.

“China will respond to the world’s expectations with responsibility and courage, continuing to play a key role as an engine of global economic growth,” Pan assured hundreds of foreign investors and China watchers.

The PBOC is the forerunner of China’s economic stimulus push – it was the first government agency to take concrete action as Beijing rolled out stimulus measures from September, and it is vital to market-liquidity adjustments, financing costs, yuan internationalisation, and Hong Kong’s role in Greater Bay Area and Belt and Road Initiative projects.

Pan specifically encouraged more “high-quality enterprises to list and issue bonds in Hong Kong”, to keep expanding mainland-Hong Kong financial-service connectivity, and to broaden two-way interest-rate swaps.