China's central bank pledges continued opening-up of financial industry

The People's Bank of China (PBOC), the central bank, said on Aug 3 that it will resolutely push forward the opening-up of the country's financial industry in a sound and orderly manner.

Measures announced to open up China's financial sector will continue to be implemented, the PBOC said in a video conference on its work in the second half of 2020.

It will promote a full implementation of the foreign investment administration model of pre-establishment national treatment plus negative list, advance the internationalization of the renminbi and capital account convertibility in a proactive and sound manner, and unify the foreign exchange management policies applied in the opening-up of China's bond market.

The central bank said it will be deeply involved in global financial governance and safeguard multilateralism.

Noting that its policies in the first half of the year facilitated a speedy recovery of the national economy amid COVID-19, the PBOC said it will pursue a more flexible and appropriate monetary policy, making it more targeted, and effectively implement policies aimed at helping enterprises tide over difficulties and ensuring employment in the second half.

The central bank also pledged to use a variety of monetary-policy tools to enable M2 money supply and aggregate financing to grow at notably higher rates than last year, while promoting a substantial growth in the inclusive loans to small and micro businesses and medium- and long-term loans to the manufacturing industry.

Efforts will be made to leverage a 1 trillion yuan ($143 billion) re-lending and rediscount quota and the policy instruments introduced in June to directly channel funds into the real economy and extend support to as many virus-hit micro and small companies as possible, the PBOC said.

The central bank also said it will advance the research and development of a legal digital currency in a proactive and sound manner.