MNI: PBOC Governor Zhou Stresses Enforcement of Financial Regs

     BEIJING (MNI) - China central bank governor Zhou Xiaochuan called for

further coordinating monetary policy and other relevant policies and setting

prices stability and systemic financial risks prevention as core targets of

regulation to financial sector.

     The PBOC will focus on risk prevention in liquidity, non-performing loan,

shadow banking, abnormal market volatility and cross-border capital flow, Zhou

said in an article published on the social media account of the State Organs

Work Committee of China Communist Party Central Committee late Thursday.

     "China will enforce the full coverage of financial regulations and the

avoidance of any possible gaps," Zhou noted. "All businesses engaged in the

financial sector must hold licenses, and all financial service must be included

in the supervision."

     The country will stress the adjustment through prices, cultivate the

benchmark market rates, form interest rate corridor mechanism and smooth the

transmit channel of currency policy, Zhou addressed.

     The central bank will maintain efforts on deleveraging, insist on prudent

and neutral monetary policy and enhance the counter cyclical adjustment, the

governor reiterated.

     China will continue to expand bond financing and verify bond products. The

central bank also supports the adoption of direct financing, especially equity

financing, in bid to develop multi-level, diversified and complementary equity

financing channels.

     China will push forward the yuan internationalization at a steady pace,

deepen foreign exchange management reform and realize the capital account

convertibility in an orderly way, Zhou emphasized, adding China will lift the

entrance restriction of foreign institutions into domestic financial market with

the condition of Chinese financial security.

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: M$A$$$,M$Q$$$]