The People’s Bank of China (PBOC) Governor Yi Gang said in a statement on Thursday, the fundamentals of the economy remain sound.
Yuan-denominated assets remain attractive due to relatively high yield gap with other convertible currencies, Yi added.
“Financial markets are stable overall.”
“The PBOC has guided financing costs lower so far this year.”
“Will keep liquidity reasonably ample in the second half of 2020.”
“Non-performing loans have increased amid COVID-19 pandemic.”
“Expects new yuan loans to hit nearly 20 trillion yuan and total social financing to reach over 30 trillion yuan in 2020.”
“Central bank’s balance sheet is stable around 36 trillion yuan.”
Separately, China’s top security regulator was also reported by Reuters, saying that the authorities will continue to comprehensively deepen capital market reform.
“Top priority is to help market confidence recover amid pandemic.”
“Will strengthen oversight over cross-border misbehaviours in stock markets.”
“Will strengthen cooperation in supervising auditing of listed companies. “
“Will help consolidate Hong Kong as an international financial center.”
“Will include star market companies in benchmark indexes.”
“Vows zero tolerance toward accounting fraud.”
“Will improve China’s pricing power of commodities including crude oil.”