MNI BRIEF: China To Support OBOR Via Foreign Exchange Reserves
China will continue diversifying investment of its over USD3 trillion foreign exchange reserves and facilitate forex transactions for foreign direct investment (FDI), while advancing the opening up of the bond market, Zhu Hexin, head of State Administration of Foreign Exchange, told a forum on Friday.
The use of foreign exchange reserves will boost support for major projects and other initiatives alongside the Belt and Road Initiative (OBOR), he said, noting the Qualified Foreign Investor (QFI) system will be optimized to support the growth of long-term and policies to facilitate cross-border financing will be optimized, with more small and micro enterprises included in the policy scope to broaden financing channels. (see: MNI INTERVIEW: Yuan Rally To Depend On Stimulus, Fed- Guan Tao)
Zhu stressed that China's forex market has stabilized in the second half of the year even though it has faced increasing challenges from weaker global economic growth, intensified trade protectionism, the increased volatility in international financial markets and rising geopolitical risks.