Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)

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Direct Financing in the Monetary Policy framework of People's Bank of China

Authors
Hongjia Liu1, *
1Menaul School, Qingdao, 266237, China
*Corresponding author. Email: 3414203053@qq.com
Corresponding Author
Hongjia Liu
Available Online 22 December 2025.
DOI
10.2991/978-94-6463-916-2_7How to use a DOI?
Keywords
Monetary Policy; Direct Financing; Central Bank
Abstract

Since 2024, the monetary policy of China’s central bank has taken a turn, beginning to pay more attention to the direct financing market. Based on this phenomenon, this paper first discusses the reasons why the People’s Bank of China (PBoC) considers monetary policy during its implementation process, and then discusses how the PBoC takes direct financing into account in actual operations. Through research on China’s social financing structure and the central bank’s balance sheet, it is found that the proportion of direct financing in China’s social financing has increased in recent years, and at the same time, the central bank has also begun to engage in the buying and selling of government bonds, regulating direct financing and base money. Incorporating direct financing into the monetary policy framework is a common practice among central banks of various countries. In the future, the PBoC may further improve the supervision and reform of the direct financing market.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
22 December 2025
ISBN
978-94-6463-916-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-916-2_7How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hongjia Liu
PY  - 2025
DA  - 2025/12/22
TI  - Direct Financing in the Monetary Policy framework of People's Bank of China
BT  - Proceedings of the 2025 4th International Conference on Public Service, Economic Management and Sustainable Development (PESD 2025)
PB  - Atlantis Press
SP  - 49
EP  - 58
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-916-2_7
DO  - 10.2991/978-94-6463-916-2_7
ID  - Liu2025
ER  -