“The People’s Bank of China (PBoC) will continue to promote healthy development of cross border payment in the principles of openness, cooperation and mutual benefit,” said Lu Lei, deputy governor, The People's Bank of China, during the Sibos’s opening plenary.
Lei said he would discuss the topics of opening up in China’s financial markets, interlinking with the rest of the world, and cross border payments. He said: “China's financial sector has and will continue to embrace opening up and cooperation. Past experience of China's financial market development has shown that opening up is an important driving force for high quality development of the financial sector.”
He stated they had already lifted foreign ownership proportions for banks, securities firms and life insurers. He added PBoC had attached foreign investors to more than 110 financial institutions in China. Lei also noted allowing Mastercard to conduct domestic payments.
Looking to financial markets, Lei stated foreign investors can invest in the Chinese market directly or through connect mechanisms and he added that “China's bond market is the second largest in the world, with foreign investors holding nearly 4.6 trillion yuan in Chinese bonds, reaching a historical record.”
Lei said that “on one hand, we will continue to provide an enabling environment for foreign financial investors to enter and operate in China…On the other hand, we will support high quality Chinese firms to go public and issue bonds in overseas markets, and encourage Chinese sovereign wealth funds and financial institutions to invest abroad.”
Lei stated they will “actively participate in global financial governance.”
He continued: “We will strengthen cooperation with international financial organisations and the central banks of major economies, engage in global financial governance and policy coordination, and make joint efforts to promote global economic growth and financial stability.”
Lei pointed to their establishment of working groups within the US and EU in 2023 as evidence of their efforts to strengthen communication and cooperation.
Looking to cross-border payments, Lei commented that “in recent years, fintech has developed rapidly in China, with mobile and online payments significantly enhancing accessibility, efficiency and inclusion of payment services. It has made positive progress in facilitating cross border trade, investment and the personnel exchange.”
On how they were going to promote cross-border payments, Lei said they will:
- Continue to improve the mass payment infrastructure by enhancing resilience and efficiency;
- Promote the interlinking of QR codes and the faster payments system. Additionally, supporting the use of foreign payments, cards, and e-wallets;
- Improve compliance, by strictly implementing international standards for AML/CFT and intensifying efforts to crack down on illegal activities related to these;
- Work with international peers through international mechanisms to make cross border payments more efficient, inclusive and transparent.
Lei concluded by noting the importance of Swift, calling it “an important bridge for China’s global cooperation.”