(27 March 2018 – China) China’s new central bank governor indicated its financial sector will continue to open up and reform while putting “equal emphasis” on regulation and supervision to prevent financial risk.
Yi Gang, in his first public speech since taking on the role of central bank governor, told the China Development Forum that opening up leads to progress while closures points to backwardness.
“History has proved that areas that are more open are more competitive, and areas that are less open are less competitive and see risk accumulating,” Yi said.
The sector’s opening up will take place in coordination with reforms in China’s foreign exchange rate mechanism and capital account convertibility.
China will open its bond market further and will roll out the second phase of the China International Payments System (CIPS).
CIPS – a cross-border yuan settlement system is expected to allow global firms to settle payments with Chinese businesses more quickly and efficiently.