China regulator highlights resilience of economy, yuan’s strengthening trend
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CHINA’S banking and insurance regulator said the Chinese economy is resilient and the long-term trend of a strengthening yuan will not change, in a move to reassure the markets after a big sell-off in Chinese assets.
“The long-term trend of a strengthening renminbi will not change,” the China Banking and Insurance Regulatory Commission (CBIRC) said in a statement released on the regulator’s website on Tuesday (Oct 25). “China’s balance of payments surplus and huge net assets of foreign investment provide a strong guarantee for the stability of the renminbi exchange rate.”
“China’s economy has strong resilience, big potential and wide room for recovery, and the fundamentals of long-term improvement will not change,” the CBIRC said.
US-listed shares of Chinese companies slumped on Monday in a sell-off by global investors spooked by signs of President Xi Jinping’s growing power. China’s onshore yuan slid to a near 15-year low on Tuesday.
The CBIRC’s statement said financial risks are being contained and the country’s financial system overall is stable and healthy.
The regulator also said it would strengthen efforts to avoid risks to the financial system and guarantee financial stability, pledging to follow guidance delivered at the Communist Party Congress.
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“We will continue to prevent and defuse major financial risks, better coordinate development and security, and orderly promote the reform of small and medium-sized financial institutions,” it said. REUTERS
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