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China’s steady handling of outbreak contributes to global financial stability


Source: People's Daily Online

China has weathered the impact of the COVID-19 outbreak on its economy, thus significantly contributing to global financial stability, a Chinese central bank official said on Sunday.

Chen Yulu, vice governor of the People’s Bank of China (PBOC), said that the PBOC has strengthened policy coordination with international organizations and major central banks.

China will work with other countries to provide assistance to developing countries hit hard by the virus to maintain the stability of international financial markets, Chen said.

China’s financial market remains generally stable compared with overseas markets, with stable market expectations, broad space for macro regulation and a good reserve of policies.

Li Chao, vice chairman of the China Securities Regulatory Commission (CSRC), said that the A-share market has shown great resilience and anti-risk ability, attributing this to the measures China has taken to advance supply-side structural reform in the financial market.

In this regard, the CSRC has taken a series of measures, including lowering leverage levels, reducing stock pledges of listed companies and controlling increments, Li noted.

Meanwhile, Chen said consumer inflation will likely ease in the following quarters as production resumes.

Price stability is subject to economic fundamentals, Chen said, adding that China’s overall balance of supply and demand and stable macro-economy does not support long-term inflation or deflation.

Chen also said the exchange rate of the yuan has remained basically stable within a reasonable and balanced range, while the yuan-dollar rate will maintain two-way fluctuations and float at around 7.

Xuan Changneng, deputy director of the State Administration of Foreign Exchange, also pointed out that there is no basis for sharp depreciation of the exchange rate of the yuan.