Central bank to deepen financial opening-up
Pledge comes amid stabilizing foreign trade growth, opportunities in service sector
The People’s Bank of China (PBOC) will promote financial opening-up on a high level, the bank’s governor, Pan Gongsheng, said.
The central bank will work with other financial regulators on the improvement of China’s policy environment, aiming to attract more foreign-funded financial institutions and long-term capital to do business in China, and it will support Chinese financial institutions to expand their business abroad, Pan said at a press conference held on March 6 on the sidelines of the national legislature’s ongoing session.
The PBOC will attract more investment into China’s financial market, support quality Chinese enterprises in going public and issuing bonds overseas, and encourage China’s sovereign wealth funds, financial institutions, and other businesses to invest overseas, he said.
The official pledged further efforts to facilitate cross-border trade, investment, and financing, and promote the internationalization of the renminbi.
The central bank stands firm in upholding Hong Kong’s status as an international financial center and supporting Shanghai in building itself into an international financial center and expanding its high-level financial opening-up, he said.
The PBOC will work to improve payment services and ensure financial security while deepening financial opening-up.
Commerce Minister Wang Wentao said China is confident that it can sustain the sound fundamentals of foreign trade, with exports climbing the value chain and the import market presenting greater opportunities despite the complex global economic environment and uncertainties.
Positive signs have emerged as China’s foreign trade sector maintained its growth momentum in the first two months of the year, Wang said at the same news conference on March 6. Many enterprises are venturing abroad to participate in trade shows and expand their market presence, he added.
The development of foreign trade is supported by a strengthened industrial base, abundant resources, and enhanced innovation capabilities, enabling more exports of higher value-added goods. Meanwhile, China’s proactive approach to further opening up its markets has contributed to the expansion of import opportunities, Wang said.
However, factors such as sluggish global economic growth, increasing trade protectionism and rising geopolitical tensions have all contributed to the severity of the foreign trade situation, he added.
In the near term, strengthened financial services for foreign trade, continued promotion of trade fairs, and the streamlined visa process for businesspeople are among key policies that are part of the country’s efforts to address the difficulties and uncertainties faced by the foreign trade sector, Wang said.
Looking to the medium and long term, the key focus for China is to nurture new drivers for foreign trade and propel high-quality development in the sector. Expanding the volume of intermediate goods trade, facilitating cross-border e-commerce exports, enhancing trade digitization, and advancing green development are also high on the agenda, the commerce minister added.
China’s export situation, according to a January report by CITIC Securities, is expected to witness a reversal in 2024, with an estimated growth rate of around 2 percent for the entire year.
In addition to foreign trade, China will also adopt more forceful and well-focused measures to boost consumption, a key growth driver that contributed 82.5 percent to the country’s GDP growth in 2023, Wang said.
The China Securities Regulatory Commission (CSRC) will effectively perform its main duty of supervision via “whole-process supervision in all links” and work with all relevant parties to jointly nurture a sound capital market and first-class business environment.
The CSRC will guide listed firms to enhance transparency, focus on core business operations, optimize resource allocation, and conduct stable operations to ensure better returns for investors, the regulatory body’s chairman, Wu Qing, said.
The CSRC will also strive to improve the quality of listed firms through supervision efforts in key areas such as IPOs and delisting. Furthermore, it will enhance regular supervision efforts on firms after they go public by cracking down on fraud and other violations in accordance with the law.