The United States and China Sign Agreement on Financial Stability Cooperation
China Sign Agreement on Financial Stability Cooperation
The United States and China have signed agreements to cooperate on financial stability, according to a statement from the People’s Bank of China on Monday. The agreement came out of the U.S.-China Financial Working Group meeting that took place in Shanghai on Thursday and Friday.
The statement described the discussions as “professional, practical, frank, and constructive,” translation of the Chinese statement.
Beijing – The United States and China signed agreements last week to cooperate on financial stability, according to a statement from the People’s Bank of China on Monday.
A statement from the U.S. Treasury described both sides as “exchanging messages to support coordination.”
The agreement was reached during the U.S.-China Financial Working Group meeting, which took place in Shanghai on Thursday and Friday. Brent Neiman, the U.S. Deputy Under Secretary for International Finance, was involved in the discussions.Treasury, and Xuan Changneng, Deputy Governor of the People’s Bank of China, chaired the working group.
The two sides also exchanged a list of contacts for use in the event of financial stress or risky events, according to the statement from the People’s Bank of China.
Representatives from the Federal Reserve, the U.S. Securities and Exchange Commission, the National Financial Regulatory Administration, and the China Securities Regulatory Commission also attended, according to the statement from the People’s Bank of China.
The statement described the discussions as “professional, practical, frank, and constructive,” according to CNBC’s translation of the Chinese statement. The topics discussed included capital markets, cross-border payments, and the monetary policies of both countries, especially in the context of the recently concluded Third Plenary Session of China.
Technical experts reported on systemically important global banks in each country, the operational resilience of financial institutions, and climate risk stress testing.
Earlier this month, China’s government bond market experienced significant volatility amid reports of intervention by the People’s Bank of China. Central Bank Governor Pan Gongsheng said on Thursday through official media that financial risks in China had decreased, including those from local government debt.
Last week, U.S. and Chinese financial institutions also met in their first roundtable under the working group, according to the People’s Bank of China, without naming specific institutions. They discussed potential cooperation opportunities and how finance can contribute to sustainable growth.
U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng launched economic and financial working groups in September 2023, where Treasury officials will regularly meet at the deputy minister level with the Ministry of Finance and the People’s Bank of China, respectively.
