the latest statement from the deputy governor of the central bank
2024-09-26
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on september 25, 2024, tao ling, deputy governor of the people's bank of china, attended the 2024 china-asean financial cooperation and development conference and delivered a speech.
china and asean are the world's second and fifth largest economies respectively, and are important development partners to each other. china has been asean's largest trading partner for 15 consecutive years, and asean has been china's largest trading partner for four consecutive years. the two sides have jointly built more than 20 economic and trade cooperation zones, with two-way investment exceeding us$400 billion, and china has established more than 6,500 direct investment enterprises in asean.
the rapid development of industry and economy is inseparable from financial cooperation. "the people's bank of china has always attached great importance to financial cooperation with asean, serving the financial connectivity and industrial integration between china and asean," said tao ling, who introduced relevant financial cooperation between china and asean from five aspects.
first, deepen bilateral local currency cooperation.the amount of bilateral local currency swap agreements between the people's bank of china and the central banks of asean countries exceeds rmb 800 billion. the people's bank of china has signed bilateral local currency settlement agreements with the central banks of vietnam, laos, cambodia and other countries, and established a bilateral local currency settlement (lcs) framework with the indonesian central bank. since the beginning of this year, the people's bank of china has signed memorandums of understanding on cooperation with the central banks of thailand and vietnam. in response to the needs of the real economy, the use of local currency in trade and investment has been further expanded. in 2023, the cross-border rmb settlement volume between china and asean will be 5.9 trillion yuan, a year-on-year increase of 20.2%. the proportion of cross-border rmb receipts and payments in goods trade in the total settlement volume is the highest in the past five years. rmb clearing bank arrangements have been established in 6 asean countries. a total of 144 financial institutions in asean countries have become participants in the rmb cross-border payment system (cips). singapore has become an important offshore rmb market.
the second is to optimize cross-border financial services.the people's bank of china and the state administration of foreign exchange will strengthen macro-prudential management and expectation guidance, optimize the management of foreign exchange receipts and payments for trade, steadily promote high-quality opening of capital projects, implement reforms in the development of foreign exchange business of banks, and promote the liberalization and facilitation of bilateral trade and investment. with financial support, from january to july 2024, asean will remain china's largest trading partner, with bilateral trade in goods of us$552 billion, a year-on-year increase of 7.7%, accounting for 15.8% of china's total foreign trade imports and exports during the same period.
the third is to increase the openness of financial markets.the people's bank of china and other financial management departments have steadily promoted the opening up of the financial market. foreign investors, including those from asean, can invest in china's domestic financial market through direct market access or through channels such as the bond connect and the shanghai-shenzhen-hong kong stock connect. we support asean countries in issuing panda bonds. the philippine government, united overseas bank, malayan banking, and several non-financial companies in singapore have registered and issued panda bonds worth more than 10 billion yuan in the chinese interbank market.
fourth, promote the establishment of bilateral financial institutions.the people's bank of china and other financial management departments have relaxed financial industry access, improved the pre-entry national treatment plus negative list management system for the financial industry, facilitated asean financial institutions to operate in china, and bilateral financial institutions have also strengthened cooperation and established extensive business contacts. currently, asean countries have established more than 35 banking institutions in china; more than 10 chinese financial institutions have established nearly 40 branches or representative offices in asean.
fifth, support financial reform and innovation.guangxi has taken the lead in financial reform and innovation, launching pilot projects such as the china-malaysia qinzhou industrial park financial innovation project, and playing the role of a frontier position facing asean.
tao ling said that china and asean are geographically close, culturally similar, and have deeply integrated industrial and supply chains, and have broad common interests in sharing super-large-scale markets, conducting industrial cooperation, and leveraging economic complementarity. she emphasized that the people's bank of china will continue to promote high-level financial opening and help the integrated development of china-asean economies.
first, focus on the use of local currency and improve the level of trade and investment facilitation.the people's bank of china will continue to adhere to market-driven, mutually beneficial and win-win situations, aiming to promote trade and investment facilitation, continuously optimize cross-border rmb-related policies and infrastructure arrangements, strengthen the coordination of local and foreign currencies, and effectively facilitate business entities to use cross-border rmb settlement. the people's bank of china is willing to further deepen various forms of local currency cooperation with asean countries, study and optimize local currency settlement (lcs) cooperation, develop direct transactions between rmb and asean currencies, and improve local currency settlement efficiency. at the same time, it will improve the offshore rmb liquidity supply mechanism, optimize the layout of rmb clearing banks, actively support the healthy development of the rmb market in the asean region, facilitate rmb holders in the asean region to carry out investment, liquidity management and exchange risk management, and promote the formation of a virtuous cycle in the onshore and offshore rmb markets.
the second is to focus on major strategies and promote regional financial reforms.focusing on major strategies such as the joint construction of the belt and road initiative, the new land-sea trade corridor, the china-asean free trade area, and the china-asean industrial cooperation zone, we will promote the introduction of more financial pilot policies. we will support guangxi in continuously building a financial opening portal facing asean, creating a convenient place for domestic and international dual circulation market operations, and giving play to the pilot effect of financial opening.
the third is to focus on expanding opening up and promoting financial connectivity.adhere to marketization, rule of law, and internationalization, and steadily promote the convergence of rules, regulations, management, and standards in the bilateral financial field. continue to improve the pre-entry national treatment plus negative list, optimize the qualified foreign investor system, and support asean financial institutions to develop business in china. support china-asean bilateral financial institutions to innovate financial products and services, and support asean financial institutions to participate in financial business pilots. deepen cross-border cooperation in digital currency, improve the institutional arrangements for cross-border flow of financial data between china and asean, and steadily promote cooperation on green financial standards. expand the participants in the foreign exchange market, enrich the supply of foreign exchange trading products, and promote the high-level opening up of the foreign exchange market.
fourth, focus on financial security and strengthen financial cooperation and regulatory governance.steadily improve the effectiveness of the chiang mai initiative. continue to improve the china-asean financial exchange and cooperation mechanism, and promote the flow of financial talents, technology, funds and information between the two sides. deepen bilateral cooperation and exchanges in the fields of anti-money laundering and anti-counterfeiting, and jointly maintain regional financial security and stability.
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