People's Bank of China Governor Pan Gongsheng: Welcome Foreign Investors to Participate in and Invest in China's Financial Markets

Reporter Liu Qi

On March 22, People’s Bank of China Governor Pan Gongsheng delivered a keynote speech at the 2026 China Development High-Level Forum, stating that the People’s Bank of China will adhere to a supportive monetary policy stance to create a favorable monetary and financial environment for stable economic growth, high-quality development, and smooth financial market operation.

“We will continue to implement a moderately easing monetary policy,” Pan Gongsheng said. Currently, China’s social financing conditions are relaxed, and the total financial volume is growing reasonably. The central bank will balance short-term and long-term considerations, support real economic growth while maintaining the health of the financial system, and manage internal and external balance by using various monetary policy tools such as reserve requirement ratios, policy interest rates, and open market operations to ensure ample liquidity.

Regarding the renminbi exchange rate, Pan Gongsheng explained that, according to the International Monetary Fund’s classification standards, China implements a managed floating exchange rate system. Since the beginning of this year, the renminbi has appreciated about 1.3% against the US dollar, 3.7% against the euro, 3.2% against the Japanese yen, and 2.4% against the British pound.

Pan Gongsheng stated that China does not see the need or intention to devalue the currency to gain a trade advantage. The stance of the People’s Bank of China has always been clear: to uphold the decisive role of the market in exchange rate formation, maintain exchange rate flexibility, strengthen expectation guidance, and keep the renminbi exchange rate basically stable at a reasonable and balanced level. The central bank’s expectation management and the use of transparent, internationally aligned macroprudential tools help correct market herding effects and market failures, preventing destructive imbalances that have repeatedly occurred in international financial history.

“We will steadily promote high-level opening of the financial sector. Deepen financial market connectivity and cross-border payment systems to facilitate more investors investing in China’s financial markets,” Pan Gongsheng said. China’s stock and bond markets are both the second largest in the world, with market depth, resilience, and liquidity continuously improving. By the end of 2025, overseas institutions and individuals will hold over 10 trillion yuan in domestic stocks, bonds, deposits, and loans. China welcomes foreign investors to participate in and invest in its financial markets.

Pan Gongsheng noted that in recent years, the internationalization of the renminbi has made positive progress, providing more diversified currency options for domestic and foreign entities. Currently, the cost of renminbi financing is relatively low. By 2025, over 170 billion yuan in panda bonds will be issued by governments, international development agencies, financial institutions, and large enterprises, with offshore renminbi bonds issued in Hong Kong being even larger. The central bank will continue to improve the cross-border use system of the renminbi and develop financial infrastructure. It will promote diversified monetary and financial cooperation, develop offshore renminbi markets, and facilitate cross-border trade and investment activities.

(Edited by Wen Jing)

Keywords: Pan Gongsheng Financial Markets