(Yicai Global) June 23 -- China must steadily promote the two-way opening of the financial market, support domestic companies with capacity to conduct real and compliant overseas investments and go global, and create a good foreign exchange management policy environment to help Chinese firms participate in building the One Belt, One Road, Pan Gongsheng, head of the State Administration of Foreign Exchange, stressed at a meeting in Shenzhen yesterday.
China should further improve cross-border trade and investment facilitation to better serve the real economy and opening-up, Pan said.
The country must continue to maintain current account convertibility, support and ensure real and compliant international payments and transfers under current account, and further improve cross-border trade facilitation. Foreign exchange regulators must continue to deepen foreign exchange reforms, improve regulatory capabilities, build a macro-prudential management and micro-regulation system for cross-border capital flows, bolster supervision, improve monitoring and give warning of cross-border capital flows, inhibit underground lending and other irregular and illegal activities, maintain a sound and stable foreign currency market and safeguard national economic and financial security, he noted.
Shenzhen is at the forefront of China's reforms and opening, and market entities react quickly to its policy and market signals, he said. Pan hopes that the SAFE's Shenzhen bureau and foreign-currency market participants actively explore and innovate to continue to lead the new round of reforms and opening and show foreign exchange regulators in other places means of and experience in deepening reforms and improving services.
The foreign currency market has operated steadily this year, market expectations are stable, foreign reserve movements and the yuan's exchange rate have stabilized, and a balance has been struck between cross-border capital flows and the foreign currency market, Pan said.
The China Banking Regulatory Commission ordered banks to conduct spot checks of companies including Dalian Wanda Group Co., HNA Group Co. Fosun Group and Zhejiang Luosen Neili about credit issuance and risk analysis in mid-June, Caixin reported today. Most of these companies are private businesses that have been on an overseas investment spree in recent years and which are burdened with heavy loans.