PBC governor stresses reform, opening up in financial sector
By Dong Feng
People's Daily app
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China will continue to drive the yuan exchange rate reform and the central bank will look into accurate pricing and develop hedge tools while reining in risk, a central bank official said Sunday. 

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Yi Gang at the CDF on March 24, 2019. (Photos: VCG)

People's Bank of China governor Yi Gang said in his speech at the China Development Forum 2019 in Beijing that the Chinese government will further reform the financial regulatory system, expand the financial opening up and, based on progress made in foreign-invested financial institutions, widen access to the China market. 

In 2018, China fostered an adaptive monetary environment, strengthened the counter-cyclical regulation of its monetary policy, and ensured that liquidity was reasonably abundant, Yi said. 

Most of the measures have been implemented, and a few of them are in the final stage of legal modification procedures, and applications have started. The PBC will deepen reform and opening-up in the financial regulatory system, improve the mechanism for forming interest rates, exchange rates, and marketization, and expand financial opening-up, he said.

In 2019, the focus will be on looking into the accurate pricing in the market, providing sufficient hedge tools to enable a variety of investors to effectively hedge risks effectively, Yi stressed. 

Before the end of 2019, PBC will introduce measures, including to encourage foreign investment access to financing such as trust, financial leasing, auto finance, currency brokerage and consumer finance; to remove the upper limit on the foreign shareholding ratio of financial asset investment companies and wealth management companies newly established by commercial banks; to significantly expand the scope of the foreign banking business; to lift limits on the business scope of joint venture securities companies, and domestic and foreign investment; and to cancel the requirement for foreign insurance companies with a two-year representative office, he said. 

Chinese and foreign financial institutions will be given access in accordance with the law. 

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Han Zheng at the CDF on March 24, 2019.

Vice Premier Han Zheng, also a member of the Standing Committee of the Political Bureau of the CPC Central Committee, said at the same forum that China will continue cutting import taxes and create a first-rate environment for foreign enterprises as the country opens up its economy. 

The negative list will be shortened. More opportunities will be offered in telecommunications, education and healthcare. 

And foreign-funded enterprises are encouraged to carry out research and development and innovation in China, Han said.