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MNI POLICY: China To Boost Financial Macro-Prudential Checks

China will carefully monitor and assess systems related to real estate financing, the forex market, the bond market and cross-border transactions, carrying out structured macro-prudential stress tests, People's Bank of China Deputy Governor Pan Gongsheng said Tuesday.

The stress tests will be carried out periodically in the future, helping to provide guidance for policy decisions, Pan said in the article published on Caixin.com.

The PBOC will also publish a list of China's systematically important banks and take a lead to draft the regulation assessing similarly important insurance firms and securities firms, Pan said. A countercyclical capital buffer mechanism to help alleviate the impact of fluctuations in systemic financial risks will also be set up, according to Pan.

MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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MNI London Bureau | +44 203-865-3812 | les.commons@marketnews.com
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