BEIJING — China will continue to take a cautious and orderly approach to the two-way opening-up of financial markets and push ahead with foreign exchange management reforms, Pan Gongsheng, head of the State Administration of Foreign Exchange, said on June 22.
Qualified Chinese enterprises are encouraged to conduct outward investment, and favorable foreign exchange policies will help Chinese businesses participate in the Belt and Road Initiative projects, Pan said at an industry seminar.
The Belt and Road Initiative was proposed by China in 2013 as a trade and infrastructure network that would connect Asia with Europe and Africa — and beyond — along the ancient trade routes.
Changes to China’s forex reserves and RMB exchange rates have tended to be stable, while cross-border capital flow and foreign exchange supply and demand were “largely in equilibrium,” he added.
China’s forex reserves rose for the fourth-consecutive month in May to $3.05 trillion, an increase of $24 billion from April.
“China’s economic restructuring and upgrading picked up this year [ ...] economic growth was stabilizing with more positive signs,” he stressed.