Related News
PBOC pushes supply-side structural reforms
Print Edition
China’s central bank yesterday vowed to promote supply-side structural reforms in the financial sector this year, in a bid to offer better and more efficient services for the country’s real economy.
Pan Gongsheng, deputy governor of the People’s Bank of China, said the bank would endeavor to optimize funding structures as well as the financial market and product system in 2019, in a response to the central government’s recent call to make supply-side reforms in the financial industry.
More specifically, the central bank aims to bring the bond market into full play and let it fulfill its role in supporting the real economy and the capital replenishment of commercial banks and other financial institutions.
More incentives will be given to promote the issuance of credit bonds and the development of an asset-backed securitization market, a statement from the regulator said.
Asset-backed securities are bonds created from various types of consumer debt. For example, when a person takes out a home equity or auto loan, their loan becomes an asset on the books of the lending institution, whether it be a bank or a consumer finance firm.
To diversify its capital market structure, China loosened various regulations on the issuance of such financial products in May 2012 and the industry grown dramatically since then.
Last year saw continued momentum in the ABS sector, with the volume of new issuance hitting 2.003 trillion yuan (US$298.9 billion) as of the end of 2018, according to data from Wind Information, a Shanghai-based service provider of financial data, information and software.
The PBOC pledged to strengthen the supervision and development of the gold and bill markets, tighten management of interbank lending and boost the innovative development of various capital markets.
Pan added the bank would continue addressing the Internet finance sector and seek to build a long-term regulatory system for the industry.
Meanwhile, the central bank will identify key areas that are in bad need of credit support.
And it will encourage more lending to small and private businesses and for rural revitalization and upgrading traditional manufacturing industries.
While boosting development of the country’s multi-level capital market, Pan also cautioned against the risks facing the financial system.
“China has entered a new stage of development,” the senior official said.
“The task of preventing and resolving major risks remains arduous given the downward economic pressure.”
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
