Does this mean that monetary policy should be used to preserve financial stability? Not primarily! We should not violate the Tinbergen principle: a separate policy instrument for every policy objective. The first best policy for preserving financial stability and specifically to prevent systemic risks from materializing is macroprudential supervision.
Also, I would like to express sincere gratitude to colleagues from the HKMA, the Securities and Futures Commission (SFC) of Hong Kong and the AMCM who have made unswerving efforts in the preparation for the pilot scheme, to the Hong Kong and Macao Affairs Office of the State Council, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission，and especially to the People’s Government of Guangdong Province who have vigorously supported the endeavor and my PBC colleagues in Guangzhou and Shenzhen!