China’s central bank, the People’s Bank of China (PBOC), has announced its commitment to stabilize foreign trade and improve the business environment for foreign companies. Governor Pan Gongsheng emphasized these efforts during a symposium attended by representatives from top foreign firms, including JPMorgan Chase & Co., HSBC Holdings Plc., Deutsche Bank AG, BNP Paribas, UBS Group AG, and Tesla Inc.
In line with the country’s goal to open up to overseas investors, the authorities in China will consider implementing additional measures to stabilize foreign investment and trade. Governor Pan also expressed the central bank’s commitment to optimizing the operating environment for overseas companies.
China’s ambitions to create space for foreign companies to develop within its borders were reiterated by Premier Li Qiang earlier this year. However, confidence among foreign firms about China has been waning due to tensions between Beijing and the West, as well as concerns about regulatory ambiguity in the country’s economy.
To address these concerns, China has launched a charm offensive to bolster confidence in its weak economic environment. The securities regulator has pledged more measures to support capital markets and has sought suggestions from investors, including BlackRock Inc. and Bridgewater Associates.
Foreign holdings of China’s equities and debt have experienced a significant decline, amounting to about 1.37 trillion yuan ($188 billion) from a peak in December 2021 to the end of June. This retreat of funds has diminished China’s market influence.
In addition to these efforts, the PBOC aims to improve the quality and efficiency of financial services and foster a business-friendly environment. This will contribute to China’s overall goal of stimulating economic growth and creating a more favorable landscape for foreign companies.
Sources:
– Bloomberg