Need for faster financial instruments launch, says China’s central bank
BEIJING, May 16 – China should quicken the pace of launching new financial instruments and capital markets must to be strengthened to improve their contribution to supporting economic activity, central bank governor Zhou Xiaochuan said today.
Zhou made his comments in a speech to an audience of financial regulators and industry participants.
Beijing took a milestone step in liberalising its currency regime last month, doubling the daily onshore trading band for the yuan to one per cent. The move underlined its desire for reforms designed to ease speculative pressures in the economy and rebalance capital flows, while taking the country one step closer to its goal of a basically convertible yuan by 2015.
Sources in close, direct contact with the People’s Bank of China (PBOC) and the China Securities Regulatory Commission (CSRC), say reforms are ready to be rushed out over the next 12 months to boost two-way capital flows, drive diversification of business finance and accelerate corporate currency hedging. – Reuters