MNI Policy: China's Top Regulator Calls For Neutral Policy

     BEIJING (MNI) - The Financial Stability and Development Commission (FSDC),

the country's top financial regulator, called for a neutral monetary policy, and

requested the prevention of "black swan" events and stabilising of stock, bond

and forex markets, according to a statement on the central government website on

Monday.

     The FSDC, the government agency responsible for coordinating regulation to

prevent risks to the country's financial system, convened a meeting hosted by

Liu He, the vice prime minister, last Friday to improve coordination between the

central bank, Ministry of Finance and National Development and Reform

Commission, aiming to further support the real economy.

     "The monetary policy should remain prudent and neutral, and should preset

and fine-tune at an appropriate pace, tailoring it according to changes in

economic situations and external situations," the regulator said.

     The regulator stressed the financial authorities should maintain policy

continuity and push forward reforms and the opening up of the sector, ensuring

that current measures are implemented.

     The meeting also asked that intellectual property rights be strengthened,

creating a fair competitive market environment and encouraging private economy

and entrepreneurship.

     In the latest high-profile meeting on September 3, the top financial

regulator reiterated the effectiveness of the government's efforts to manage

market expectations. China's stock and forex markets have seen high volatility

in recent months, with the China-U.S. trade war and the economic outlook

continuing to hammer at domestic investor confidence.

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

--MNI Beijing Bureau; +86-10-8532-5998; email: beijing@marketnews.com

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