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- Financial regulations in China will be stricter in future as regulators seek to control financial risk and maintain stability, Guo Shuqing, chairman of CBRC, said on the sidelines of the 19th Communist Party Congress on October 19.
“The trend points towards stricter financial regulations, strict implementation of the law, rules and discipline,” he said.
- Guo also highlighted non-performing loans (NPLs) as a major risk to the stability of the Chinese banking sector.
“This is a very serious problem,” said Guo. “We need to fully expose these NPLs, strengthen the way we do it and digest [NPLs] in a timely manner… Only then can we maintain the banking industry’s healthy development.”
- The Chinese economy grew by 6.8% in the third quarter, according an October 19 notice published by the National Bureau of Statistics.
- Chinese banks made a $300m net purchase in FX in September, which represented an uptick from a net sales of $3.8bn in August, according to figures released by the State Administration of Foreign Exchange on October 19.
- Bank of China (Hong Kong) has been approved by CFETS to conduct transactions in currency swaps and options in the interbank market, effective October 20.
- The US has refrained from naming China a currency manipulator, according to an October 17 report by the Treasury. But the Treasury has kept China on its monitoring list, alongside Japan, Korea, Germany, and Switzerland, arguing that US businesses are still hampered by unfair competition from its Chinese peers.
“The Treasury remains concerned by the lack of progress made in reducing the bilateral trade surplus with the US,” said the report. “Further opening of China’s economy… would provide more opportunities for American firms and workers to compete in Chinese markets and facilitate a more balanced economic relationship between the US and China.”
- The comment came after the White House announced on October 16 that Trump is set to visit China on November 8-10, and hold a series of bilateral meetings with his counterpart, Xi Jinping.