According to the website of the People's Bank of China, on December 2, the 2024 annual academic meeting of the Chinese Financial Society and the annual meeting of the China Financial Forum opened in Beijing. The theme of this year's conference is "Building a modern financial system with Chinese characteristics and promoting the construction of a strong financial country". Pan Gongsheng, President of the People's Bank of China, said in his speech at the opening forum that the People's Bank of China will continue to adhere to the supportive monetary policy stance and policy orientation next year. Optimize the statistics of money supply, include personal current deposits and non bank payment institution customer reserves, two highly liquid financial instruments, in the narrow money (M1) statistics, and strengthen the monitoring of money supply and social liquidity at all levels, including the broad money (M2). Pan Gongsheng, who improved the monetary policy framework, said that since this year, China's economy has been operating steadily on the whole. The People's Bank of China has adhered to a supportive monetary policy stance and implemented monetary policy adjustments several times. In particular, since late September, it has launched a package of incremental policies to fully promote the achievement of the annual economic development goals. "Next year, the People's Bank of China will continue to adhere to the supportive monetary policy stance and policy orientation, comprehensively use a variety of monetary policy tools, increase counter cyclical regulation, maintain reasonable and sufficient liquidity, and reduce the comprehensive financing costs of enterprises and residents. Give full play to the role of structural monetary policy tools, focus on strengthening support for areas such as technological innovation, green finance, and consumer finance, and promote the stable development of the real estate market and capital market. Actively promote the reform of the monetary policy framework, strengthen the implementation and transmission of interest rate policies, and enrich the toolbox of monetary policy Pan Gongsheng said that at the same time, optimizing the statistics of money supply, including personal current deposits and non bank payment institution customer reserves, two highly liquid financial instruments, in M1 statistics, and strengthening the monitoring of money supply and social liquidity at all levels such as M2. Pan Gongsheng stated that improving the monetary policy framework and accelerating the improvement of the central banking system require joint research and promotion from all sectors. He hopes that the China Financial Society will adhere to a goal oriented and problem oriented approach, widely gather the strength of the theoretical, policy, and practical circles, and propose targeted and guiding research results and suggestions, contributing wisdom to the high-quality development of finance and the construction of a strong financial country. On the same day that the new statistical caliber will be launched in January of next year, the People's Bank of China website reported that the People's Bank of China decided to launch the newly revised M1 statistical caliber as of January 2025. The revised M1 includes: circulating currency (M0), corporate current deposits, personal current deposits, and non bank payment institution customer reserves. The relevant person in charge of the People's Bank of China said in response to questions from reporters that the revised M1 statistical caliber is to further include individual demand deposits and customer reserves of non bank payment institutions on the basis of the current M1. Personal current deposits and non bank payment institution customer reserves are currently included in M2 and have not yet been included in M1. The above-mentioned person in charge further stated that firstly, regarding personal current deposits, when M1 was established, there were no personal bank cards or mobile payment systems in China, and personal current deposits could not be used for instant transfer payments, so they were not included in M1. With the rapid development of payment methods, personal current deposits now have transfer payment functions, which can be used for payment at any time without withdrawing cash. They have the same liquidity as corporate current deposits and should be included in M1. Secondly, regarding the provision for non bank payment institution customers, which can be directly used for payments or transactions and has strong liquidity, it should also be included in M1. From an international perspective, the M1 statistical caliber of major economies mostly includes personal current deposits and other highly liquid payment instruments. With regard to the release arrangement of the revised M1 statistical data, the above person in charge said that the People's Bank of China will start to count M1 according to the revised caliber from January 2025, and is expected to release it to the public in early February. At the same time as the initial announcement, the revised M1 balance and growth rate data since January 2024 will also be released. (New Society)