Zhou Xiaochuan (C), governor of the People's Bank of China (PBOC), Yi Gang (R), deputy governor of the PBOC and Pan Gongsheng, deputy governor of the PBOC and head of the State Administration of Foreign Exchange, attend a press conference on financial reform and development on the sidelines of the first session of the 13th National People's Congress in Beijing, capital of China, March 9, 2018. (Xinhua/Li Xin)
China's central bank, the People's Bank of China (PBOC), held a press conference Friday to talk about China's policies on financial reform and development during the first session of the 13th National People's Congress (NPC) in Beijing.[Special coverage]
Governor Zhou Xiaochuan and Deputy Governors Yi Gang and Pan Gongsheng were present at the press conference.
Interest rate
"Many major economies have gradually withdrawn their monetary policy from quantitative easing, as the global economy has shown signs of recovery in several regions. That means the past global monetary expansion and low interest rate may gradually come to an end," said Zhou.
"China is also part of the global economy, and it is steered to a new normal, where its pursuit of growth moves from quantitative approach to high-quality approach," said Zhou. This change indicates its future growth will reduce reliance on money pumps, according to Zhou.
"The broad money supply in the Chinese economy has already been substantial. In fact, it can be used more efficiently. Once it is used more efficiently, it does not necessarily mean tight," said Zhou.
Although the country's nominal interest rate rose 0.4 percentage point, its actual rate is stable considering inflation factor, according to Yi.
When answering questions on whether China will follow the US Federal Reserve System's interest rate hike, he said China's monetary policy is mainly based on the domestic economic and financial situation. "We must take comprehensive considerations," said Yi.
Foreign exchange
"Cross-border capital flows are relatively balanced. In this regard, we will continue to promote the smooth convertibility of capital and meanwhile prevent risks," said Yi.
"China's foreign exchange market has experienced highly intensive risks and shocks for a period of time. We have adopted counter-cyclical measures in a macro and prudential way to adjust cross-border capital flows," said Pan.
"In the past few years, we have strengthened the micro-regulation of the foreign exchange market in accordance with China's current laws and foreign exchange management policies," said Pan.
"The regulation focus is mainly on combating fraudulent deceptive transactions, cracking down on underground banks, strengthening declaration of authenticity of cross-border revenue and expenditure, and enhancing compliance supervision of financial institutions," said Pan.
"The micro-regulation measures will not change despite cycle changes. It will maintain the consistency and stability of standards in different cycles," Pan emphasized.
China already in phase of stabilizing leverage ratio: central bank
China has entered a stage of stabilizing leverage ratio and is gradually reducing it, China's central bank governor said Friday.
China is likely to reduce reliance on wide capital support for economic growth as the country seeks high-quality development, Zhou Xiaochuan, head of the People's Bank of China, told a press conference on the sidelines of the first session of the 13th National People's Congress.
China not in hurry to develop digital currency: central bank governor
The development of a digital currency should be a prudent progress and avoid excessive speculation, Zhou said at a press conference on the sidelines of the annual session of the National People's Congress.
China likely to reduce reliance on wide capital support for growth: central bank governor
China is likely to reduce reliance on wide capital support for economic growth as the country seeks high-quality development, China's central bank governor said Friday.
Liquidity conditions might not necessarily become tight as China improves utilization efficiency of broad money supply, Zhou Xiaochuan, head of the People's Bank of China, told a press conference on the sidelines of the first session of the 13th National People's Congress.
China's financial risks in property market under control: central bank
Financial risks in China's property market is controllable as the country has taken a string of prudential regulation policies, a central bank official said Friday.
China to be bolder in opening up financial sector: central bank governor
China will be bolder in the opening up of its financial sector, Zhou Xiaochuan, the country's central bank governor, said Friday.
China's forex reserves to keep basically stable: central bank
Economic fundamentals and a stable yuan will keep China's foreign exchange reserves basically stable, a central bank official said.
