China's monetary policy & opening-up of financial sector

Added On October 12, 2020

 By keeping its monetary policy prudent and within a normal range, China has been one of the few major economies in the world adopting normal monetary policy. Meanwhile, the country has also been resolutely pushing forward the opening-up of the financial industry. 

 
Yi Gang, governor of the People's Bank of China, said keeping a normal monetary policy, positive interest rates, as well as an upward yield curve, is generally conducive to the sustainable economic and social development.
 
This also helps provide positive incentives for economic entities and maintains the global competitiveness of yuan-denominate assets.
 
The central bank has smoothed the transmission mechanism of monetary policy through reform and marketized means, leading to a reasonable increase in money supply and social financing.
 
The financial sector's support for the real economy, especially the manufacturing sector as well as medium and small firms has been further beefed up.  
 
Meanwhile, China has been resolutely pushing forward the opening-up of the financial industry, as part of its efforts to build a moderately prosperous society in all respects.
 
The country's financial opening-up has been running at full tilt in recent years. More than 50 opening-up measures are being carried out such as scraping foreign ownership caps on various financial institutions in fields including banks, securities, funds, futures and insurance. 
 
As of the first half of 2020, the yuan-assets held by international institutions had reached 6.4 trillion yuan.
 
At present, the country is transforming toward the full implementation of the "pre-establishment national treatment plus negative list" management system for foreign investment.