Latest news with #NationalAdministrationofFinancialRegulation
RTHK
07-05-2025
- Business
- RTHK
China rolls out a slew of measures to lift economy
China rolls out a slew of measures to lift economy People's Bank of China governor Pan Gongsheng said funding for factory upgrades and other innovations and to facilitate trading-in of consumer goods will be increased to 800 billion yuan. File photo: RTHK National Administration of Financial Regulation director Li Yunze said a package of financing policies will soon be forthcoming to help stabilise the property market and support small and micro companies as well as private entities. File photo: RTHK China Securities and Regulatory Commission chairman Wu Qing said Beijing plans to help facilitate the return of foreign-listed Chinese firms to mainland and Hong Kong stock markets. File photo: RTHK Beijing announced on Wednesday a whole basket of new measures, including interest rate cuts and extra funding, to prop up the economy as it steps up efforts to offset the impact from sky-high US tariffs. The measures came shortly after US and mainland officials said US Treasury Secretary Scott Bessent and chief trade negotiation Jamieson Greer will meet with China's top economic official He Lifeng in Switzerland this weekend for talks, paving the way for a potential de-escalation between the two sides. Speaking in a press briefing in Beijing, People's Bank of China governor Pan Gongsheng said the central bank will lower the borrowing cost of its seven-day reverse repurchase rate, its benchmark interest rate, by 10 basis points, to 1.4 percent, effective on Thursday. The central bank, he added, will also reduce the amount of cash that banks must hold in reserve, also known as the reserve requirement ratio (RRR), by 50 basis points from May 15, which will inject a trillion yuan in liquidity into the market. Other measures include lowering the mortgage rate by 25 basis points, scrapping the RRR for auto financing firms, a new 500 billion yuan relending tool to support service consumption and elderly care, as well as increased funds for factory upgrades and other innovative projects. "[For example,] relending funds for factory upgrades and other innovations currently involve a quota of 500 billion yuan," said Pan. "So we will increase this by 300 billion yuan to a total of 800 billion yuan, to support our 'two new' policies of upgrading large-scale equipment and trading-in of consumer goods." Separately, Li Yunze, director of the National Administration of Financial Regulation (NAFR), said authorities will soon introduce a package of financing policies to help stabilise the property market and support small and micro companies as well as private entities. Li said there will be "tailor-made services" for business entities that are significantly affected by tariffs and that these will ensure all foreign trade enterprises are able to access financial support and necessary loans with increased capital support. "Capital replenishment work for large commercial banks is being accelerated...," Li said in explaining about the increased funding work. "Different regions are also replenishing capital for small and medium-sized financial institutions through multiple channels. At the same event, China Securities and Regulatory Commission chairman Wu Qing said that despite pressure from US tariffs, markets have stabilised following intervention efforts by the authorities. Wu also noted that Beijing would continue to support state-owned investment company, Central Huijin, to further stabilise the A-share market, which he said is "currently undervalued" and has room for gains. He added the country planned to help facilitate the return of foreign-listed Chinese firms to mainland and Hong Kong stock markets. Separately, Wu singled out US investor Warren Buffett, who is set to retire this year, for mention for his fundamental principles of long-term value investing and rational investing, noting that such principles and efforts to reward investors will not end with the retirement of the investment legend.
South China Morning Post
23-04-2025
- Business
- South China Morning Post
China to boost yuan with overseas gold storage facilities as it challenges US hegemony
China will allow certain products traded on the Shanghai Gold Exchange to be delivered overseas by establishing storage facilities in other countries – part of a broader effort to promote the yuan and reduce reliance on the US dollar and US financial systems, according to top regulatory agencies. Advertisement In an action plan aimed at enhancing Shanghai's cross-border financial services to support outbound investment and the Belt and Road Initiative, Chinese regulators said key financial platforms would be strengthened to better allocate global financial resources and enable deeper international investor participation in China's markets. 'We will support the Shanghai Gold Exchange and other institutions in cooperating with overseas exchanges through product licensing, and expand the use of renminbi-denominated benchmark prices in major international markets,' according to a statement released on Monday by the People's Bank of China, the National Administration of Financial Regulation, the State Administration of Foreign Exchange and the Shanghai Municipal People's Government. 'We will explore the internationalisation of physical delivery for specific products [traded] on the Shanghai Gold Exchange by establishing offshore delivery and storage facilities.' The Shanghai Gold Exchange. Photo: Shutterstock The action plan, which covers 18 key measures aimed at boosting Chinese businesses' global competitiveness through enhanced cross-border financial services, includes support for increasing the use of the yuan, foreign currency exchange services, and reinsurance coverage for the Belt and Road Initiative. Advertisement
South China Morning Post
23-04-2025
- Business
- South China Morning Post
China to boost yuan with overseas gold storage facilities as it challenges US hegemony
China will allow certain products traded on the Shanghai Gold Exchange to be delivered overseas by establishing storage facilities in other countries – part of a broader effort to promote the yuan and reduce reliance on the US dollar and US financial systems, according to top regulatory agencies. Advertisement In an action plan aimed at enhancing Shanghai's cross-border financial services to support outbound investment and the Belt and Road Initiative, Chinese regulators said key financial platforms would be strengthened to better allocate global financial resources and enable deeper international investor participation in China's markets. 'We will support the Shanghai Gold Exchange and other institutions in cooperating with overseas exchanges through product licensing, and expand the use of renminbi-denominated benchmark prices in major international markets,' according to a statement released on Monday by the People's Bank of China, the National Administration of Financial Regulation, the State Administration of Foreign Exchange and the Shanghai Municipal People's Government. 'We will explore the internationalisation of physical delivery for specific products [traded] on the Shanghai Gold Exchange by establishing offshore delivery and storage facilities.' The Shanghai Gold Exchange. Photo: Shutterstock The action plan, which covers 18 key measures aimed at boosting Chinese businesses' global competitiveness through enhanced cross-border financial services, includes support for increasing the use of the yuan, foreign currency exchange services, and reinsurance coverage for the Belt and Road Initiative. Advertisement
