People’s Bank of China Governor Pan Gongsheng is speaking at the 2024 Lujiazui Forum in Shanghai”
Monetary policy is supportiveMonetary policy will provide financial support for China’s economic recoveryThe weakening momentum of the USD’s rise is a benefit to the yuanWants to strengthen counter- and cross-cyclical policy adjustmentPBOC aims to maintain stability in policyWill prevent the exchange rate from over shooting
Will make flexible use of deposit reserves and other measuresIt is difficult to
maintain the overall credit growth rate above 10% as in the pastConditions for PBOC to trade treasury bonds in secondary market to inject base money have
become gradually ripeAt present, it is
particularly important to pay attention to the risks of holding a
large amount of long-term government bonds and maintain a normal
upward sloping yieldWill particularly
focus on long-term treasury bond risk to keep normal upward yield
curvePeople’s Bank of China and Ministry of Finance studying implementation of government bond tradingto gradually introduce sovereign bond trading
more to come
From the website:
Lujiazui Forum was created as a high-level global platform for government officials, world financial leaders and outstanding scholars to discuss and foster international financial cooperation and further the financial reform and market opening in China. Named after the financial district of Shanghai, China’s financial capital, the forum also symbolizes Shanghai’s vision of becoming a leading international financial center.
This article was written by Eamonn Sheridan at www.forexlive.com.
