China’s policymakers are turning their attention towards ‘high-quality and sustainable growth’, and are focusing on improving the country’s economic structure and forming new growth drivers, the central bank governor says.

Progress in central bank digital currencies in China is ‘already on track’ and the ‘final stage is not very far away’, said former head of the People’s Bank of China at a conference in Hong Kong.

Standing Committee of the National People’s Congress warned some data at China’s small and medium-sized financial institutions does not ‘truly reflect the actual situation’ during a meeting last month.

The agreement with Saudi’s central bank is the 30th currency swap signed by the People’s Bank of China over the past decade, as China picked up the pace of the yuan’s worldwide usage.

China’s central bank to pursue global use of yuan while maintaining stability, and also look to support more overseas central banks, international development institutions and multinational enterprises to issue panda bonds.

Financial regulators from mainland China, Hong Kong and Macau have proposed to undertake stronger collaboration between the three jurisdictions to promote fintech in the Greater Bay Area.

People’s Bank of China (PBOC) governor Pan Gongsheng told the Financial Street Forum 2023 in Beijing the debt level of the Chinese government is at the mid-to-lower level internationally.

He will participate virtually and three top mainland Chinese regulators will attend in person for the first time as the Global Financial Leaders’ Investment Summit gets under way on Tuesday, reflecting the central government’s support of the city as an international financial centre.

China’s local governments are issuing refinancing bonds to service outstanding liabilities associated with US$9 trillion of ‘hidden’ debt amid efforts by Beijing to defuse risks in its slowing economy.

China’s big banks are likely to face further pressure on their revenues and interest margins in the fourth quarter, as the world’s second-largest economy battles an ongoing property sector crisis and low consumer confidence, analysts said.

The governor also encouraged Chinese banks to grow and expand in Saudi Arabia, highlighting the importance of foreign investment and fintech-driven financial inclusion in promoting Saudi Vision 2030.

The 10 Asian digital payment services now supported by Ant’s ‘Alipay+-in-China’ programme cover a total population of more than 175 million in Southeast and East Asia.

China’s yuan plunged to a 16-year low against the US dollar due to a poor business outlook and a widening yield gap, with the central bank promising to ‘actively and steadily respond’ to depreciation pressure.

Eric Jing Xiandong said the e-CNY could be as valuable to industrial internet use as mobile payments were for consumer use.

Call for unification of QR codes comes as the People’s Bank of China pushes to promote the country’s central bank digital currency across all retail use cases.

Recognising the severity of the problem, the Politburo pledged in late July to adjust and optimise property policies in a timely manner to engineer a gradual recovery of the industry through 2025.

Banks will cut rates on 16 trillion yuan (US$2.2 trillion) of existing first-home loans, helping households save up to 109 billion yuan in interest, ANZ says. The cut will have a tangible impact on profit margins.

The Chinese central bank’s underwhelming rate cuts this week may have taken the markets by surprise, but it will help to preserve the profit margins of commercial banks, the linchpin of the nation’s financial stability, according to analysts.

China cut its medium-term lending benchmark for corporate loans, but surprisingly held the reference rate for mortgages, the central bank confirmed on Monday.

Forum speakers include guests from China and overseas, in government, finance and industrial enterprises to discuss opportunities for cross-border investment and industrial cooperation in the post-Covid

China’s yuan is around 6.9 per cent weaker against the US dollar than it was a year ago, but the future of the currency will be ‘supported by solid underlying fundamentals’, said a newspaper affiliated with the central bank.

The People’s Bank of China cut the rate of the one-year medium-term lending facility (MLF) on Tuesday, while also lowering the seven-day reverse repo rate.

Former central bank governor Yi Gang gave two recent lectures of his tenure in Beijing and Singapore, saying China’s digital yuan could facilitate a wide range of domestic retail payments, including by foreign visitors, while it also has overseas use.