Sonali Ray, writer
Brief news
- The United States and China executed agreements to collaborate on financial stability.
- The U.S.-China Financial Working Group, co-led by officials from the Treasury Department and the People’s Bank of China, met in Shanghai.
- The discussions focused on monetary policy, capital markets, cross-border payments, and the resilience of financial institutions.
Detailed news
BEIJING— According to a People’s Bank of China announcement on Monday, the United States and China executed agreements to collaborate on financial stability last week.
The agreement was a component of the U.S.-China Financial Working Group’s meeting in Shanghai on Thursday and Friday. The working group is co-led by Brent Neiman, deputy under secretary for international finance at the Treasury Department, and Xuan Changneng, deputy PBOC governor.
According to the PBOC transcript, the two parties also exchanged a list of individuals to contact in the event of financial duress or risk events. As of early Monday afternoon Beijing time, a Treasury readout was unavailable.
The PBOC also reported that representatives from the National Financial Regulatory Administration, China Securities Regulatory Commission, U.S. Securities and Exchange Commission, and Federal Reserve were in attendance.
According to a CNBC translation of the Chinese statement, the readout characterized the conversation as “skilled, practical, forthright, and productive.” The PBOC readout stated that the two countries’ monetary policy, capital markets, and cross-border payments were the subjects of discussion, particularly in the context of China’s recently concluded Third Plenum meeting.
Technical specialists provided reports on the operational resilience of financial institutions, the stress testing of climate risk, and the systematically significant global banks of each country.
Earlier this month, the government bond market in China experienced increased volatility in response to a report of PBOC intervention. On Thursday, Pan Gongsheng, the governor of the central bank, announced via state media that China’s financial hazards have decreased, including those associated with local government debt.
The PBOC also reported that the first roundtable meeting of the working group was held last week, during which U.S. and Chinese financial institutions convened. However, the report did not specify the identities of the participants. The institutions exchanged prospective opportunities for collaboration and deliberated on the ways in which finance could facilitate long-term growth.
In September 2023, U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng established economic and financial working groups. These groups would facilitate regular meetings between Treasury officials and the Ministry of Finance and PBOC at the vice ministerial level.
Source : CNBC News