CHINA: China-U.S. financial working group holds fifth meeting

The China-U.S. financial working group held its fifth meeting in Shanghai from Thursday to Friday, discussing a range of issues related to the financial policies of both countries, according to China’s central bank.

Xuan Changneng, deputy governor of the People’s Bank of China (PBOC) and Brent Neiman, deputy under secretary for international finance at the U.S. Department of the Treasury co-chaired the meeting. Representatives from China’s National Financial Regulatory Administration, China Securities Regulatory Commission, the U.S. Federal Reserve and the U.S. Securities and Exchange Commission attended the meeting, according to a statement released by the PBOC on Monday.

The two sides had professional, pragmatic, candid and constructive communication on a range of financial policy topics of mutual interest, including the broader strategy of further deepening comprehensive reforms as discussed at the third plenary session of the 20th Central Committee of the Communist Party of China, the central bank said.

The discussions also covered the economic and financial situation, monetary policies, financial stability and regulation, securities and capital markets, cross-border payments and data, international financial governance, financial technology, sustainable finance, as well as anti-money laundering and counter-terrorism financing.

During the meeting, a group of technical experts presented a report on various topics, including disposal mechanisms for global systemically important banks, operational resilience of financial institutions, climate risk stress testing, and supervision of cross-border financial services, according to the statement.

China and U.S. financial institutions also held their first roundtable meeting under the framework of the China-U.S. financial working group. Focusing on sustainable finance, participating members shared their experiences and practices and exchanged views on potential cooperation opportunities.

During the meeting, the PBOC and the U.S. Department of the Treasury signed an exchange of letters to enhance cooperation on financial stability. They also exchanged lists of financial stability contacts to ensure timely and unobstructed communication between their financial regulatory authorities during financial stress incidents and operational risks of financial institutions, thereby reducing uncertainty.

The central bank said the two sides agreed to maintain communication.