MNI China Press Digest October 21: Yuan, PBOC, New Governor

The following lists highlights from Chinese press reports on Friday:

• There is no reason for the yuan to depreciate over the long-term as it will be supported by the stable growth of the Chinese economy, the Securities Daily reported citing analysts after the offshore yuan breached the 7.27 mark against the U.S. dollar this week. As global risk aversion has pushed the U.S. dollar higher, the offshore yuan has fallen through support levels and the central parity rate of the yuan has also been lowered in a controlled manner in recent days, the newspaper said citing analysts. The People's Bank of China has a basket of policy tools to stabilise the yuan, the newspaper added.
• The People’s Bank of China will implement prudent monetary policy and strengthen cross- and counter-cyclical adjustments, the PBOC-run newspaper Financial News reported citing PBOC Deputy Governor Pan Gongsheng. Pan also said the PBOC will create a favorable financial environment for promoting economic growth, expanding employment, stabilizing prices, and maintaining the balance of payments. It will give more prominence to the prevention and control of financial risks, and improve the early warning and disposal of financial risks, Pan was cited as saying.
• An update on the People’s Bank of China website showed Xuan Changneng had been appointed as a new deputy governor on Thursday, Caixin reported. Xuan, whose most recent role was deputy head of the State Administration of Foreign Exchange, is one of the first overseas returnee officials in the financial regulatory department. Xuan moved to the U.S. to study in 1992 and obtained a master's degree in economics and a doctorate in finance from the University of Texas at Austin. He worked on Wall Street for two years before returning to China in 2000, Caixin said. He once worked for the China Securities Regulatory Commission, China Construction Bank, and as head of the PBOC’s Financial Stability Bureau from 2009 to 2016, he had promoted major reforms relating to deposit insurance system and policy banks, Caixin said.