Viewpoints

Greater Coordination Between Global Central Banks Needed

Zhou Xiaochuan, president of China Finance Society and former governor of People’s Bank of China, called for strengthening the coordination and cooperation among central banks. He said this was necessary because of the spillover effect of monetary policy, increasing cross-border capital flows and the potential impact of digital currencies on financial infrastructure. Zhou made his remarks in a speech delivered in Beijing as part of the 10th Caixin Summit in November.

China Looks to Boost Cooperation with ASEAN Central Banks

The People’s Bank of China is willing to work with the central banks of Singapore and other Association of Southeast Asian Nations (ASEAN) members to enhance cooperation in financial market interconnection as well as investment and financing under the Belt & Road program. Pan Gongsheng, deputy governor of the PBOC and SAFE administrator, also proposed stronger cooperation in monetary matters to maintain regional stability. He made his remarks at the China (Chongqing)-Singapore Connectivity Initiative Financial Summit 2019 in November.

China Market Seen as Having Significant Potential

China has an open and competitive market with great potential,said Ning Jizhe, vice minister of the National Development and Reform Commission and commissioner of the National Bureau of Statistics. He described China’s economic development as market oriented and government regulated. He told the 2019 New Economic Forum that China’s economy will be driven to transform and upgrade by increasing consumption levels and changing consumption patterns.

Conditions Seen as Favorable for China’s Financial Stability

China’s upgrading of its economy will help ensure greater financial stability, said Liang Tao, vice chairman of the China Banking and Insurance Regulatory Commission. Speaking at the 16th Annual Conference of the International Financial Forum in November,Liang said the country’s finance sector has the ability to deflect risk.

China to Further Open up the Financial Market

China will let more players enter the domestic foreign exchange market and create more new market instruments, said Lu Lei,deputy administrator of SAFE. Speaking at the Inaugural Bund Summit in Shanghai in late October, he also said China will open the capital account in an orderly manner. The country will also encourage overseas investors to invest in firms listed on the Science and Technology Innovation Board.