The People's Bank of China's Shanghai Head Office will make full use of structural monetary policy tools and drive the "sci-tech board" in the bond market to keep delivering results in the city.

The PBOC's Shanghai Head Office will work to make financial services more effective in supporting the real economy in the second half of the year, the office announced on its website on Aug. 4, citing goals set out during its second-half work conference held on the same day. It will firmly implement a moderately loose monetary policy and push financial institutions to actively tap into effective credit demand, it added.

During the meeting, the office also called for continued optimization of financial management and services in the period, with sustained efforts to make payments more convenient. Priorities include improving the "buy now, refund immediately" tax rebate service for departing travelers and strengthening the "Easy Go" service for overseas visitors.

The central bank's Shanghai Head Office also plans to steadily deepen financial reform and opening-up, build out a more complete foreign exchange management system, implement new policies on high-level opening of cross-border trade financing and investment, overseas lending and listings, and improve the ability of small and micro enterprises to hedge exchange-rate risk.

It will also coordinate cross-border and offshore finance, moving faster to roll out and deliver results from a comprehensive pilot reform of offshore financial services. Other priorities include expanding digital yuan applications and its broader ecosystem, and continuing local legislative work in the financial sector.

In addition, the office will continue guarding against and defusing financial risks in key areas, including strengthening mechanisms to prevent and resolve systemic risk, cracking down on illegal financial activities, refining the macroprudential management framework, and improving the monitoring of cross-border financial risks, it stressed.

 

Source:Yicai Global