Chinese government official Chen Yulu announced that China’s foreign exchange or forex market oversight at micro and macro levels would get boosted. The People’s Bank of China’s deputy governor delivered his statement last Saturday, September 4, at Beijing’s China International Finance Annual Forum.
We believe this latest forex news is important for our readers to learn about as they begin the trading week. We think it will help them understand and stay guided regarding the new developments in the Chinese foreign exchange market.
Chen said that Chinese authorities would strengthen forex market supervision at macro and micro levels and enhance the professionalism and effectiveness of financial regulation. The People’s Bank of China’s deputy governor affirmed that building all types of firewalls will also be a measure taken.
Chen remarked that their step aims to prevent systemic risks resolutely. Additionally, the Chinese central bank will reportedly close loopholes in its financial technology regulation.
This measure will comprise all kinds of financial institutions, products, and services into its prudential supervision framework. The weekend report via Bloomberg featured Chen and other Chinese officials’ comments.
They mentioned supervision in the financial services sector would get rigidified more, according to the report posted online by foreign exchange trading news website ForexLive.
The authorities from China pledged to tighten their oversight in the financial services industry, suggesting a recent regulatory onslaught on the private sector, which dispatched shockwaves internationally, is not yet finished, per the news posted online by Internet news service provider Al Arabiya.
Zhou Liang was also speaking on the panel during the Beijing forum. The vice-chairman of the China Banking and Insurance Regulatory Commission remarked that the severe easing policies amid the COVID-19 pandemic of central banks in major developed economies had resulted in rising financial fragility internationally.
Zhou pointed out that the banking watchdog would concentrate on preventing risks from foreign institutions’ malicious or deleterious cross-border capital movement. We think the Chinese regulators’ pledge of tighter forex market control is meant to safeguard their country’s foreign exchange industry.
We respect their decision to implement these new measures. We are aware that China has been quite occupied in tightening rules of all kinds of industries, and among them is the technology sector which has been a big concentration so far.
For forex traders, we would like to advise them that China’s new foreign exchange rules may impact them either adversely or positively. We want to inform them that they can get optimal results in their forex trading activities by closely monitoring the developments in China and the world markets.
We also believe that learning about the new rules for China’s finance and forex sectors will help traders and investors meet any possible challenges head-on.