BEIJING (Reuters) – China will “actively and steadily” deleverage and tackle financial risks, sources said on Monday, citing the country’s five-year plan (2016-2020) for the financial sector.
China will boost the role of price-based monetary policy targets with interest rates as core, according to two sources with knowledge of the matter and a document seen by Reuters.
The sources were quoting the plan jointly issued by the People’s Bank of China, financial regulators and other government agencies.
China will significantly boost the share of direct financing in its financial system, especially equity financing, the sources said.
China will continue to promote the process of yuan internationalisation, expecting cross-border yuan payments to account for over a third of all cross-border payments by 2020, the sources said.
The central bank has yet to respond to a Reuters request for comment.
(Reporting by Li Zheng and Ma Rong, Writing by Kevin Yao; Editing by Shri Navaratnam)