MNI: PBOC To Play Bigger Role in Fin Regulation: Governor Zhou

     BEIJING (MNI) - The People's Bank of China will play a bigger role in

China's future financial regulatory structure, Zhou Xiaochuan, governor of the

central bank, said Friday.

     Different financial authorities need to increase the coordination of their

regulatory acts, Zhou said at a press conference in Beijing as part of the

proceedings of the National People's Congress.

     China can be "bolder" in opening its financial markets to foreign

investors, Zhou said, adding the central bank may seek more connections with

global capital markets.

     China's foreign currency reserve has declined in February largely due to

valuation effects, Pan Gongsheng, the head of PBOC's forex division, said at the

same press conference. Governor Zhou commented that forex reserve can now be

valued guided by the basket of currencies kept by the International Monetary

Fund through its SDR.

     China has introduced enough policies to advance yuan's

internationalization, and needs to see how the policies take effect, Zhou said.

China will continue to enlarge the global acceptance of its currency, he said.

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

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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