A bank employee counts Chinese renminbi (RMB) banknotes next to US dollar banknotes at Kasikorn Bank in Bangkok, Thailand, on January 26, 2023.
Atit Perawonmeth | Reuters
BEIJING – The United States and China last week signed an agreement on cooperation for financial stability, the People’s Bank of China announced Monday.
A statement from the Ministry of Finance said the two countries had “exchanged letters supporting the adjustment.”
The agreement was part of a meeting of the U.S.-China Financial Working Group held in Shanghai on Thursday and Friday. Brent Niemann, Treasury Undersecretary for International Finance, and Suan Channen, Deputy Governor of the People’s Bank, will co-lead the working group.
The two countries also exchanged a list of people to contact in the event of financial stress or risk events, according to a People’s Bank of Japan statement.
Representatives from the Federal Reserve, the U.S. Securities and Exchange Commission, the State Financial Supervisory Administration and the China Securities Regulatory Commission also attended, according to the People’s Bank of China.
The reading said the conversation was “professional, realistic, frank and constructive,” according to CNBC’s translation of the Chinese statement. The topics discussed included capital markets, cross-border payments, and monetary policy for the two countries, especially in the context of China’s recently concluded Third Plenary Session, the People’s Bank of China said in a report.
Technical experts reported on operational resilience and climate risk stress testing of systemically important global banks and financial institutions in each country.
China’s government bond market became volatile earlier this month following reports of intervention by the People’s Bank. Central bank governor Ban Gongsheng said on state media on Thursday that China’s financial risks, including from local government debt, have decreased.
Last week, U.S. and Chinese financial institutions also held their first roundtable discussion under the framework of the working group, the central bank said, without disclosing the names. The institutions shared potential cooperation opportunities and discussed how finance can contribute to sustainable growth.
U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng established the Economic and Financial Working Group in September 2023, with Treasury officials meeting regularly at the vice-secretary level with the Treasury Department and People’s Bank of China, respectively.
