Financial Regulation - 1Q20 Sector Overview
How Are China’s Regulatory Bodies Responding to Increasing Market Pressures?
Looking back, in 2019, the Chinese economy grew at a rate of 6.1% YoY. Meanwhile, the original 2020 GDP growth forecast from State Council was 6%. However, the outbreak of the coronavirus has severely disrupted domestic economic activities in the first two months of 2020. At the moment, the top priority has been helping businesses nationwide overcome difficulties and resume operations. This is to stabilize employment and prop up the national economy, citing Premier Li Keqiang.
PBoC, the country’s monetary policy regulator, is trying to increase liquidity in the market through several monetary tools. These include releasing refinancing, rediscounting loans, and expanding capital for commercial banks to issue more credit to businesses nationwide.
For more information about major Chinese financial regulatory highlights and events, download our Q1 China Financial Regulation Sector Overview.
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