The joint working group of the People's Bank of China (PBOC) and the Ministry of Finance, at its first ever formal meeting, have agreed to strive for maintaining stable development of the bond market and providing a suitable market environment for the central bank's treasury bond trading operations.
At the meeting held in Beijing shortly after its establishment, the joint working group determined its operating mechanism, with members of the working group from the the PBOC -- China's central bank -- and the Ministry of Finance exchanging views on issues related to operation of the stock market.
Both agreed that the central bank's treasury bond trading is an important means to enrich the monetary policy toolkit and strengthen liquidity management.
In the next step, efforts will be made to coordinate development and security, continue to strengthen policy coordination and continuously improve the relevant institutional arrangements in maintaining stable development of the bond market within the framework of norms, and in providing a suitable market environment for the central bank's treasury bond trading operations.
In efforts to reinforce the counter-cyclical adjustments of monetary policies and maintain adequate liquidity at a proper level in the banking system, the PBOC, respectively in August and September, conducted net bond purchases with the face value of 100 billion yuan (about 14.14 billion U.S. dollars) and 200 billion yuan (about 28.28 billion U.S. dollars), according to an announcement on treasury bond trading issued by the central bank.
Joint working group of China's central bank, finance ministry agrees to maintain stable operation of bond market
Joint working group of central bank, Finance Ministry agrees to maintain stable operation of bond market
