China to Curb Risks in, Standardize the Financial Market's Innovative Development, PBOC Says
Yicai Global
DATE:  Jul 06 2017
/ SOURCE:  Yicai
China to Curb Risks in, Standardize the Financial Market's Innovative Development, PBOC Says China to Curb Risks in, Standardize the Financial Market's Innovative Development, PBOC Says

(Yicai Global) July 6 -- China's central bank will prioritize risk prevention and control this year, and continue to standardize innovation in and development of the financial market.

It will also swiftly promote asset management products and issue regulations on investments by industrial enterprises in the financial sector and financial holding companies, its 2016 annual report said.

The country will improve the deposit insurance system, craft a mechanism for financial institutions to exit the market, better financial-risk management tools -- especially cross industry ones -- cross market risk monitoring, evaluation, warning and handling. While actively promoting financial reform in key areas, the nation will hew to a red line that no systemic financial risks may occur, the People's Bank of China (PBOC) further stated in the annual report released yesterday .

PBOC will continue this year to cleave to the principal of steady progress by implementing stable macroeconomic policies and flexible micro policies and a prudent and neutral monetary policy, the report also averred. Adapting to the new changes in the mode of money supply, PBOC will soundly regulate money supply, intensify efforts to dredge smooth transmission channels and mechanisms for monetary policy, and maintain the basic stability of liquidity to create a neutral and moderate monetary and financial environment for structural reform. The country will pay more heed to reform and innovation, with reform and regulation well balanced, and closely integrate monetary policy regulation and expanding reform to give full play to the market's decisive function in resource allocation.

PBOC will keep cultivating and improving the market-based interest rate formation, regulation and transmission and yuan exchange rate formation mechanisms to maintain the basic stability of a reasonable and balanced yuan exchange rate, further improve the prudent macro policy framework, and explore bringing more financial activities and financial markets under prudent macro management, steadily advance yuan internationalization, expand bilateral trade and investment in local currency settlement, promote bilateral currency cooperation, fully implement reform programs for development and policy banks, and sustainably develop institutional arrangements to up support for the real economy.

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Keywords:   Central Bank,Regulator,Money Policy