Business
22:18, 25-Jul-2017
PBOC to strictly regulate trading, Internet finance
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China's central bank the People’s Bank of China (PBOC) said in a statement on Tuesday that it would strictly regulate financial trading and strengthen the regulation of Internet finance.
Chinese policymakers are looking to control risks in what regulators have called “chaotic” financial markets.
The PBOC said China will step up coordinated supervision over its systemically important financial institutions and financial infrastructure.
Zhou Xiaochuan, Governor of the People's Bank of China./AFP Photo
Zhou Xiaochuan, Governor of the People's Bank of China./AFP Photo
The PBOC statement followed an internal meeting at the central bank led by Governor Zhou Xiaochuan.
Chinese President Xi Jinping said last week that the central bank would take on a bigger role in supervising the financial sector, though few details are known of a financial stability committee planned to be set up.
Analysts have interpreted statements concerning the need to clean up the financial sector as a sign that monetary policy tightening will continue.
However, the central bank on Tuesday reiterated that it will maintain appropriate credit growth and keep liquidity basically stable, while lowering financing costs to the “real economy”.