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He declared that the central bank will enhance the regulation mechanism for short-term interest rates and will also investigate the potential development of a macroprudential liquidity support tool for non-bank financial entities, as reported by China Daily.
The People's Bank of China is set to introduce a renminbi repo facility for foreign investors and global organizations (FIMA RMB Repo). According to Pan Gongsheng, this facility allows foreign central banks, monetary authorities, international financial institutions, and sovereign wealth funds to secure renminbi liquidity from the People's Bank of China via repo transactions, utilizing Chinese government bonds and other high-quality bonds as collateral.
"This tool will aid foreign central banks in managing renminbi liquidity and allocating assets," he stated. "Foreign investors, such as central banks, are increasingly entering the Chinese bond market, and their demand for liquidity management is also rising."
The PBOC plans to initiate a pilot program for offshore renminbi trading in the Shanghai Free Trade Zone, with six state-run banks, such as Bank of China and China Construction Bank, having received the green light.
Moreover, the central bank chief pledged to stay alert to financial dangers as China "keeps merging into the global financial system."
source: chinadaily.com.cn
The People's Bank of China is set to introduce a renminbi repo facility for foreign investors and global organizations (FIMA RMB Repo). According to Pan Gongsheng, this facility allows foreign central banks, monetary authorities, international financial institutions, and sovereign wealth funds to secure renminbi liquidity from the People's Bank of China via repo transactions, utilizing Chinese government bonds and other high-quality bonds as collateral.
"This tool will aid foreign central banks in managing renminbi liquidity and allocating assets," he stated. "Foreign investors, such as central banks, are increasingly entering the Chinese bond market, and their demand for liquidity management is also rising."
The PBOC plans to initiate a pilot program for offshore renminbi trading in the Shanghai Free Trade Zone, with six state-run banks, such as Bank of China and China Construction Bank, having received the green light.
Moreover, the central bank chief pledged to stay alert to financial dangers as China "keeps merging into the global financial system."
source: chinadaily.com.cn
