• 2019-03-29 06:40

    HAINAN(MNI) - China and the U.S. could reach a final agreement on settling their trade dispute by the end of June, Hu Xiaolian, a former deputy governor of the PBOC and now chairwoman of the Export-Import Bank of China, said at the Boao Forum in southern Hainan province. Here are major points made by Chinese delegates at the forum on Friday:

    --Any U.S.-China trade deal will only be a starting point to work on deeper dividing issues, Hu said.

  • 2019-03-15 03:33

    BEIJING (MNI) - The People's Bank of China should consider raising the deposit reserve rate to help banks lower lending costs to companies, Dai Xianglong, the former central bank governor said.

    "The interest rate the PBOC pays for the deposit reserves that banks are required to set aside has been set at 1.62% for a long term, and the authorities should raise it to a level not lower than the average deposit rate," Dai told in a forum held by China Finance 40 Forum, a prominent Chinese think tank.

    Dai, also warned China must be alert to systemic risk as the financial markets open up, including a plunge in the stock market, increases in defaults and a sharp yuan depreciation, adding that the authorities must do their best to avoid them.

    Dai noted China has made efforts

  • 2019-03-07 08:03

    --China's Finance Ministry Should Replenish Banks' Capital
    --Stronger China Economy to Bolster Yuan Confidence

    BEIJING (MNI) - China should not rush to cut its benchmark interest rates, as any move by the central bank will have a major impact and there is time to take stock of the economy's overall standing, the president of a local branch of the People's Bank of China told MNI in an exclusive interview.

    China's Prime Minister Li Keqiang said out this week that both quantitative and pricing tools could be used to lower real rates, but that didn't necessarily mean the central bank would "cut rates in short-term," said Guo Xinming, president of the PBOC Nanjing branch.

    After several reserve ratio reductions since January 2018, monetary policy measures have hit their expecte

  • 2019-03-05 06:14

    BEIJING (MNI) - Leverage ratios of state-owned companies and local governments should be reduced further and increased paring back of debt levels is not incompatible with economic stability, People's Bank of China Deputy Governor Chen Yulu said Tuesday.

    Although the aims of deleveraging have basically been achieved, further cuts were needed to reduce leverage ratios further, said Chen, who is also deputy head of the economic committee of Chinese People's Political Consultative Conference

    "Structural deleveraging and stabilizing economic growth have many aspects that allow them to coordinate, they are not against each other," Chen told a press conference in Beijing.

    Pushing deleveraging through requires a stable macro and fiscal back drop, with counter-cyclical adjus

  • 2019-03-05 05:47

    BEIJING (MNI) - China made its economic goals more flexible to account for growing uncertainties affecting the economy, an official involved in drafting the government report told reporters on Tuesday.

    Here are the main points from a press conference by Huang Shouhong, the director of the State Council's policy research office, commenting on Premier Li Keqiang's work paper:

    --On the growth target lowered to 6.0%-6.5% from last year's 6.5%, Huang said the situation is more complicated this year with greater headwinds, so lowering the target fits the reality. The economy will likely be volatility, so the goals must be more flexible. The target China has set fits potential and can ensure employment.

  • 2019-03-04 21:38

    BEIJING (MNI) - China can assure U.S. negotiators it will keep its currency stable, though it is unlikely to promise outright on the value of the yuan, said Li Daokui, a former member of the Monetary Policy Committee of the People's Bank of China, said on the sideline of the National People's Congress.

    "Such demand by the U.S. is consistent with China's need," Li said.

    Regardless the outcome of trade negotiations, the Chinese economy in the long term will continue to grow steadily, Li repeated his view.

    China's domestic monetary policy will likely be "loose and orderly" and geared towards helping medium and small businesses transform, Li said.

  • 2019-02-26 03:39

    BEIJING (MNI) - Pan Gongsheng, vice governor of the People's Bank of China called for supply-side structural reform in China's financial sector in an interview with China Central Television, the state TV broadcaster.

    Here are the key points from the interview:

    --There are structural flaws in China's financial services sector, which is dominated by indirect financing led by large and medium-sized banks, with poorly developed equity financing, said Pan.

  • 2019-02-21 01:40

    BEIJING (MNI) - The People's Bank of China's responded to the latest financial data showing both new loans and money aggregates hitting historical highs in January. Their response is published on the front page of today's Financial News, a newspaper run by the PBOC. These are the key points

    --The increase in bill financing in January has supported the real economy, helping lower financing costs of SMEs, said the Monetary Policy Department at the PBOC. Some of the bill financing had been used by companies to 'arbitrage' between banks to pick up on rates, but noted this was only temporary as there was little arbitrage opportunity with structured deposit interest rates returning to a reasonable level, the PBOC said.

  • 2019-01-16 05:10

    BEIJING (MNI) - China's Ministry of Finance (MOF) will enhance the role of China Government Bonds as a main tool for central bank open market operations, expanding their use in the transmission of monetary policy, Guo Fangming, deputy director of the Treasury Department under the MOF told a economic forum earlier Wednesday.

    On the basis of meeting the government's financing needs, policymakers will continue to let CGBs play an important role in macro interest rate regulation, financial market pricing, increasing monetary assets reserves and interest rate risk management, Guo added.

    The move could improve coordination between CGB issuance and money supply, a bond analyst told MNI, noting the People's Bank of China could inject liquidity via direct purchases of CGBs from th

  • 2018-12-25 05:15

    TOP NEWS: China said on Tuesday it will further reduce market barriers, Xinhua News Agency reported. A new so-called negative list of industries closed to investment has 151 items and 581 specific rules, down from 177 and 288 in the previous version, Xinhua said.

    INSIGHT: China will put weight on countercyclical measures, including further prudent monetary policy easing and more proactive fiscal policy, to boost domestic investment which is subject to the pressure of an economic slowdown, MNI understands from officials and advisors. A major driver of policy next year will be investment, including in infrastructure and manufacturing.