China has announced new steps to speed up Shanghai\u2019s growth as a global financial hub and to expand the international use of the yuan. <\/p>\n
Speaking at the annual Lujiazui Forum in Shanghai, People\u2019s Bank of China Governor Pan Gongsheng said authorities would launch a pilot program for offshore-yuan foreign-exchange trading in the city.<\/p>\n
The plan is aimed at supporting the \u201ctwo-way opening\u201d of China\u2019s financial markets and helping Shanghai become a global center for yuan asset allocation and risk management, according to the report, News.Az<\/a> reports, citing Anadolu agency.<\/a><\/p>\n Pan said the central bank would also establish repurchase facilities for overseas central banks and monetary authorities, allowing them to use high-grade assets such as Chinese government bonds in repurchase agreements.<\/p>\n The move is designed to support yuan liquidity management and encourage foreign institutions to hold and trade yuan-denominated assets, according to the report.<\/p>\n Under the plan, six Chinese lenders will be authorized to conduct offshore-yuan foreign-exchange trading in the Shanghai Free Trade Zone through the China Foreign Exchange Trade System.<\/p>\n The banks are Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, and Citic Bank.<\/p>\n Top Chinese financial regulators used the forum to emphasize Shanghai\u2019s role as a key channel for offshore finance and foreign participation in China\u2019s domestic markets.<\/p>\n The measures come as Beijing seeks to strengthen the yuan\u2019s global role and present China\u2019s financial system as a source of stability amid volatility in global markets.<\/p>\n Shanghai has long been central to China\u2019s efforts to deepen capital-market reforms, attract foreign financial institutions, and expand cross-border yuan settlement.<\/p>\n Chinese officials have increasingly promoted the yuan\u2019s international use in trade, investment, and reserve management, particularly as emerging economies seek alternatives to dollar-dominated financial channels, according to the report.<\/p>\n