The China Securities Journal with comments from Ma Jun, chief economist of the People’s Bank of China's research. This via MNI:
- Interest rates and exchange rates will remain the focus of financial reforms during the 13th five year period (2016-2020)
- Says that abolishing the cap on deposit rates is a milestone for interest rate reforms but not the end
Says two other important tasks yet to be done:
- Strengthen financial institutions' pricing ability
- Making the monetary transmission mechanism more effective
More:
- Financial institutions will be encouraged to use more market rates like SHIBOR, repo rates and treasury yields to price products and gradually reduce reliance on PBOC's benchmark rates
- Reform is also needed so that changes in short-term money rates and policy rates can more effectively affect lending/deposit rates and bond yields
And, from Yao Yudong (also a PBOC researcher) on taks during the nest 5 year period:
- Interest and exchange rate reform
- Realizing yuan convertibility under the capital account
- Freer use of the yuan
- Developing multi-level capital market
- Encouraging financial innovation, developing inclusive finance
