China's financial regulator announces new measures to shore up economy

China's National Financial Regulatory Administration (NFRA) on Wednesday announced eight new measures to shore up its economy and capital markets at a joint press conference along with the People's Bank of China and the China Securities Regulatory Commission on plans to stabilize markets and expectations.

These measures will benefit the real estate sector, capital markets, and exporters.

Li Yunze, NFRA director, briefed the media on these measures in detail.

"Firstly, we will introduce financing mechanisms that fit the new development pattern of the real estate to consolidate the steady development of the real estate market. Secondly, we will further expand pilot programs for long-term investments of insurance funds to inject more incremental capital into the market. Thirdly, we will optimize regulatory rules and further lower the risks for insurance companies investing in stocks to keep the capital market steady and active," Li said.

The financial regulator will also introduce measures to help exporters, said Li.

"Fourthly, we will roll out a package of polices to support micro and small enterprises and private enterprises, and strengthen the financial coordination to help stabilize businesses and the economy. Fifthly, we will also carry out measures for the banking and insurance industries to support exporters, provide targeted services to market players heavily affected by tariffs, and help them maintain stable operations and expand their markets," said Li.

Li also said that regulations on the mergers and acquisitions loan will be introduced to facilitate the industrial upgrade.

In addition, the National Financial Regulatory Administration will allow eligible commercial banks nationwide to establish financial investment companies, so as to increase investments in technology and innovation businesses, Li said.

The National Financial Regulatory Administration will also work out guidelines on technology insurance to support technological innovation, said Li.

The central parity rate of the Chinese currency renminbi, or the yuan, strengthened 20 pips to 7.0108 against the U.S. dollar Monday, according to the China Foreign Exchange Trade System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.