Central banks of China, Pakistan renew bilateral currency swap agreement

China's central bank said on Wednesday that the People's Bank of China (PBOC) and the State Bank of Pakistan recently had renewed their bilateral currency swap agreement with a swap size of 30 billion yuan/1,180 billion Pakistani rupees.

The agreement is valid for three years and can be further extended upon mutual consent.

The PBOC said renewing the agreement will help strengthen financial cooperation and expand the use of local currencies between the two countries while also promoting bilateral trade and facilitating investment.

China's securities regulator has pledged to prioritize market stability and resolutely prevent sharp fluctuations as a core objective for 2026, aiming to consolidate sound development of the capital market.

The China Securities Regulatory Commission (CSRC) made the commitment at its annual work conference on Thursday, where the regulator reviewed the past year's performance and outlined key tasks for 2026.

In 2025, listed companies distributed a combined total of 2.68 trillion yuan (about 380 billion U.S. dollars) in cash dividends and share buybacks throughout the year, further consolidating the momentum for high-quality development.

Initial public offerings (IPOs) and follow-on offerings reached a combined 1.26 trillion yuan, while the exchange bond market issued various bonds totaling 16.3 trillion yuan.

Eighteen futures and options products were smoothly listed, demonstrating the robust functioning of the multi-tiered capital market.

The meeting emphasized that while the capital market currently shows stable and sound performance, it still faces complex and severe challenges posed by intertwined domestic and external risks as well as the overlapping of persisting and emerging issues.

Efforts will be made to effectively enhance the intrinsic stability of the market, the CSRC said, adding that it will rigorously investigate and punish excessive speculation, market manipulation, and other illegal activities to prevent sharp market fluctuations.

It will work to foster a market ecosystem where "long-term capital engages in long-term investment," the regulator said, pledging efforts to broaden the channels for medium and long-term capital inflows, introduce various products and risk management tools suited to long-term investment, and actively guide long-term, rational and value-based investment.

It also vowed to enhance the inclusiveness and adaptability of the multi-tiered equity market, crack down on illegal activities such as financial fraud, price manipulation and insider trading, and enhance corporate governance among listed firms.

The CSRC will advance the two-way opening up of the capital market in 2026.

Efforts will be made to expedite the implementation of the optimized Qualified Foreign Institutional Investor scheme, expand the scope of futures products accessible to foreign investors, and enhance the facilitation of cross-border investment and financing, the regulator said.