BEIJING: China’s central bank is pledging to keep the country’s stock, bond and foreign-exchange markets stable, and says it will further promote the internationalisation of the yuan to expand its use in cross-border payments.
The People’s Bank of China (PBoC) also reiterated its intention to “deepen reform” of the yuan exchange rate mechanism, while keeping the currency stable at a “reasonable and equilibrium” level, according to a statement released last Friday.
It said it would advance the development of the offshore yuan market, and enhance Shanghai and Hong Kong’s standing as international financial centres.
The central bank held a meeting last Friday that was chaired by governor Pan Gongsheng.
It focused on studying and planning ways to implement decisions that were made at the latest plenum of the Communist Party’s Central Committee.
The four-day Beijing conclave, in which China outlined its economic plan for the 2026-2030 period, wrapped up last Thursday.
The PBoC said in last Friday’s statement that it is committed to striking a balance between supporting economic growth and maintaining the health of the financial sector.
For the coming five years, the Chinese government has signalled a determination to deepen its manufacturing and technology push as it looks to maintain competitive advantages.
There is also increased urgency to boost the domestic market, as the country seeks to achieve sustainable growth amid rising global trade protectionism.
Since 2024, the central bank has rolled out more than a dozen structural policy tools including re-lending programmes, through which it provides cheap financing to banks to encourage them to provide loans to companies in key sectors.
Last fall, the PBoC rolled out measures to help support the stock market following a steep sell-off, including a swap facility that institutional investors could use to to finance their stock purchases. — Bloomberg
