“The People’s Bank of China (PBoC) will continue to promote the healthy development of cross-border payment under the principles of openness, cooperation, and mutual benefit,” stated Lu Lei, deputy governor of the PBoC, during the opening plenary at Sibos.
Lei discussed themes of opening up China’s financial markets, interlinking with global systems, and enhancing cross-border payments. He emphasized that the financial sector in China is committed to opening up and cooperating internationally. His remarks highlighted that the experience gained from the development of China’s financial market underscores that openness is a vital driver of high-quality development.
He revealed that foreign ownership limits for banks, securities firms, and life insurers have already been raised, and that the PBoC has connected foreign investors with over 110 financial institutions in China. Lei also mentioned the authorization of Mastercard to conduct domestic payments within China.
Turning to the financial markets, he indicated that foreign investors have the option to invest directly in the Chinese market or through connect mechanisms. He pointed out that China boasts the second-largest bond market globally, with foreign investors holding nearly 4.6 trillion yuan in Chinese bonds, a record high.
“On one hand, we will provide an enabling environment for foreign financial investors to operate in China,” Lei noted. “On the other hand, we will support high-quality Chinese firms in going public and issuing bonds in overseas markets, while encouraging Chinese sovereign wealth funds and financial institutions to invest abroad.”
Lei expressed a commitment to “actively participate in global financial governance,” highlighting plans to strengthen cooperation with international financial organizations and the central banks of major economies. He underscored the importance of global financial governance and policy coordination in promoting economic growth and financial stability.
He referenced the establishment of working groups within the US and EU in 2023 as part of efforts to enhance communication and cooperation.
Regarding cross-border payments, Lei remarked on the rapid development of fintech in China, emphasizing that mobile and online payments have notably improved accessibility, efficiency, and inclusion in payment services. These advancements have positively impacted cross-border trade, investment, and the exchange of personnel.
To promote cross-border payments, Lei outlined several initiatives:
1. Improve mass payment infrastructure to enhance resilience and efficiency.
2. Promote QR code interlinking and enhance faster payment systems, while supporting foreign payment methods, cards, and e-wallets.
3. Strengthen compliance by adhering to international AML/CFT standards and intensifying the crackdown on illegal related activities.
4. Collaborate with international peers through global mechanisms to enhance efficiency, inclusivity, and transparency in cross-border payments.
In conclusion, Lei highlighted the importance of Swift, describing it as “an important bridge for China’s global cooperation.”