China to improve monetary policy controls, build risk warning system

Reuters Updated - September 04, 2021 at 01:12 PM.

People’s Bank of China Vice Governor says China would work to incorporate all financial institutions in its supervision framework

FILE PHOTO - A staff member walks in front of the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing, June 25, 2013. REUTERS/Jason Lee/File Photo

China will continue to improve monetary policy controls and its prudent macroeconomic policy framework, and construct an early-warning system to monitor and evaluate financial risks, a senior central bank official said on Saturday.

People’s Bank of China Vice Governor, Chen Yulu, told a Beijing forum that China would continue to maintain “the bottom-line of avoiding systemic risks” and would work to incorporate all financial institutions in its supervision framework.

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China will continue to open up its financial markets to foreign institutions, he said in the broadcast speech, describing the process as “almost complete”. Chen said restrictions on foreign ownership in banking, securities, fund management and insurance had been completely removed.

Foreign investors increased their holdings of domestic yuan assets, including stocks, bonds, deposits and loans, to 1.27 trillion yuan ($197 billion) in the first half of 2021, he said.

Published on September 4, 2021 06:13