China Should Further Open Up Finance Sector, PBOC Official Says

(Bloomberg) -- China’s finance sector should open up further to support the “dual circulation” economic strategy and mitigate risks in the industry, a central bank official said.

More liberalization in the financial sector would provide extra support to the real economy, according to Liu Guiping, vice governor of the People’s Bank of China. He was speaking at a forum on Saturday organized by the China Finance Society.

China’s “dual circulation” development strategy is one in which the domestic market becomes the main growth driver, supplemented by international demand.

Cao Yu, vice chairman of the China Banking and Insurance Regulatory Commission, stressed on the importance of supervision in the banking and insurance industries to protect consumers’ interests and lessen financial risks.

“We need to keep the supervisory regulations transparent and maintain the consistency of regulation criteria, to both Chinese and foreign-funded institutions, and both state-owned and private enterprises,” the Securities Times cited Cao as saying at the same forum.

In its quarterly policy implementation report released earlier this week, the PBOC said China will improve financial risk prevention. It will also maintain normal monetary policy for as long as possible and keep the macro leverage ratio basically stable.

©2020 Bloomberg L.P.