China's central bank will join other financial authorities to introduce a number of policy measures to better serve the high-quality development of the real economy and the high-level opening of finance, Pan Gongsheng, governor of the People's Bank of China, said on Monday.
Speaking at the opening ceremony of the Annual Conference of Financial Street Forum 2026 taking place from Oct. 19 to 22 in Beijing, Pan said these measures include establishing a liquidity support facility to address large-scale redemptions by non-bank institutions, expanding the range of institutions eligible for the standing lending facility (SLF), and promoting connectivity between the interbank and exchange bond markets.
"The tool is designed to establish a bond market stabilization mechanism and constitutes a new instrument of the People's Bank of China's macro-prudential management. The instrument comprehensively weighs the prevention of systemic risks and moral hazard in the financial market system, and is activated under specific scenarios in which asset management institutions face collective liquidity risk and the bond market experiences a negative 'redemption-selloff' spiral," said Pan.
The central bank will also expand the application scope of the SLF.
"More foreign-funded incorporated banks in China will be included, and it is also made clear that nationwide banks apply the same operational arrangements, covering all deposit-taking financial institutions in China. After being included, these foreign-funded incorporated banks in China also gain access to the central bank's liquidity support channels, to better develop their business," Pan said.
Other policy measures to be introduced include pilot measures to facilitate foreign financial institutions' RMB purchase and sale business in the onshore foreign exchange market, and issuing guidelines regarding financial support for building international science and technology innovation centers in Beijing (Beijing-Tianjin-Hebei region), Shanghai (the Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area, according to Pan.
"The People's Bank of China plans to launch a pilot project allowing eight Chinese and foreign offshore RMB clearing banks to conduct proprietary trading in the onshore interbank foreign exchange market, in accordance with international financial market practices and trading conventions, so as to facilitate deeper participation by overseas institutions in the onshore foreign exchange market and promote the integrated development of onshore and offshore markets. In the future, China will further intensify the opening-up of the foreign exchange market based on the pilot results," Pan said.
With a theme of "Building an Open Collaborative and Inclusive Ecosystem for Global Financial Development," this year's conference attracts about 400 prominent guests from over 40 countries and regions to attend various activities, including the main forum, parallel forums, thematic conferences and side events.
China to roll out policy measures to boost financial sector opening-up: governor
