Fed’s policy stance will be favorable for China’s capital flows: FX regulator
China’s foreign exchange regulator said on Thursday the U.S. Federal Reserve’s policy stance will be favorable for the nation’s capital flows, and expected the cross-border capital flows to remain steady despite some uncertainties.
China will prevent risks in its cross-border capital flows, and ensure safety of its forex reserves, Wang Chunying, spokeswoman for the State Administration of Foreign Exchange (SAFE), said in a news conference.
The Fed recently called a halt to further rate hikes over this year in the face of rising global economic risks, in turn putting a dent on the dollar.
China will improve channels for investing in its interbank bond market and develop the panda bond market, Wang said, adding that there is room for foreign investors to buy more Chinese paper.