Economy Aug 04

PBoC pledges continued internationalisation of financial industry

Bonds, currency and capital account convertibility on its H2 action list  

PBoC pledges continued internationalisation of financial industry

(ATF) The People's Bank of China (PBOC), the central bank, said on August 3 that it will push forward with the internationalisation of China’s financial industry in the second-half of the year.

Measures announced to open up China's financial sector, including the internationalisation of the yuan and capital account convertibility, will continue.

The central bank plans to unify the foreign exchange management policies applied in the opening-up of China's bond market, it added in a video conference.

Further, officials vowed they will be deeply involved in global financial governance and safeguard multilateralism.

A report in the Financial Times said the PBoC was hoping the digital yuan, already being trialled in a number of major cities, would break the headlock that tech giants Alibaba and Tencent have on the payments industry. Sources told the newspaper that officials want banks to regain share of the sector and think a digital currency would simplify interbank settlements. 

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