The People's Bank of China (PBOC) has announced plans to implement a moderately loose monetary policy in 2025 to maintain ample liquidity and support economic growth amid geopolitical uncertainties. Deputy Governor Xuan Changneng emphasized the central bank's commitment to proactive macroeconomic policies, considering both domestic and international economic conditions. Additionally, the PBOC has decided to suspend government bond purchases to prevent market volatility and mitigate risks associated with falling bond yields. The central bank will instead utilize alternative liquidity tools to stabilize the market. Governor Pan Gongsheng also stated that China will significantly increase the allocation of its national foreign exchange reserves in Hong Kong and support the development of Hong Kong's financial markets. Measures include enhancing financial connectivity between Hong Kong and mainland China, improving the offshore renminbi market, and launching a 100 billion yuan renminbi trade financing liquidity fund. The announcement was made during the Asian Financial Forum, where six measures to deepen financial cooperation were outlined.