will improve cross - border trade facilitation under the current account while reform of the foreign exchange sector will move ahead to streamline administration, delegate power, improve regulation and upgrade services ; and a foreign exchange supervisory system will be established, which focuses on credit risk assessment and ex - post verification. second, prudent and orderly steps will be taken to advance high - standard opening - up of the capital account. by making coordinated planning for trading, exchange and remittance, for cross - border rmb and foreign currency management, and for capital account liberalization and risk prevention, we will liberalize the remaining few non - convertible items step by step while enhancing facilitation measures under the items already convertible. focusing on rmb internationalization and two - way opening - up of the financial sector, we will actively support shanghai in its building of an rmb - denominated financial asset allocation and risk management center to improve the width and depth of the rmb financial market. third, continued efforts will be made to enhance our abilities for economic and financial management as well as risk prevention and control in an open environment. we will improve the framework for foreign exchange market administration featuring " macroprudential management plus micro supervision " and enhance the review mechanisms for combating money laundering, terrorist financing and tax evasion so as to safeguard the stable and sound operation of the foreign exchange market. the near - term priorities in the reform and opening - up of the foreign exchange sector are as follows. first, we will diversify market products and participants home and abroad, and improve the infrastructure systems as well as service capacities of china foreign exchange trade system and shanghai clearing house so that they are better able to provide services globally from shanghai. second, measures will be taken to advance reform regarding cross - border investment by private equity investment funds 3 / 5 bis - central bankers'speeches to support their cross - border industrial investment. moreover, we will expand the pilot programs of qualified domestic limited partnership ( qdlp ) and qualified foreign limited partnership ( qflp ) to support shanghai becoming a major market in the world for wealth management and asset management. third, chinese residents will have more options for asset allocation overseas. through the mechanisms interconnecting financial market infrastructures, such as the shanghai - hong kong stock connect, shenzhen - hong kong stock connect and bond connect, we will scale up the qualified domestic institutional investor ( qdii ) scheme, improve qdii management mechanisms, and launch

gongsheng pan : situation and development of china's foreign exchange market speech by mr gongsheng pan, deputy governor of the people's bank of china, at the 13th lujiazui forum, shanghai, 10 june 2021. * * * honorable secretary li qiang, mayor gong zheng, governor yi gang, chairman guo shuqing, chairman yi huiman, ladies and gentlemen, good morning. at today's forum, i would like to talk about the situation and development of china's foreign exchange market. i. the rmb exchange rate has seen two - way fluctuations and the foreign exchange market operates stably 1. the operation of the foreign exchange market is a subject of common concern. since the beginning of this year, the rmb exchange rate against the us dollar has seen twoway fluctuations and is generally stable. developments in international financial markets, especially the fluctuations in the interest rate and the exchange rate of the us dollar, have had some impact on other currencies, including the rmb. at the same time, with the chinese economy continuing to recover steadily, the rmb exchange rate has remained basically stable at an adaptive and equilibrium level. at present, china's current account surplus remains in a reasonable range ; supply and demand in china's foreign exchange market are basically in equilibrium ; and china's foreign exchange reserves are stable and rising. china adopts a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. it has proved to be an institutional arrangement suitable to china's national conditions and will be pursued persistently. 2. factors influencing the rmb exchange rate are complicated and two - way fluctuations will become normal. the rmb exchange rate is more stable than other currency exchange rates ; rmb exchange rate expectations are stable ; and trading in china's foreign exchange market has been rational and orderly. there are multiple factors home and abroad that influence the movements of the rmb exchange rate. on the one hand, china's economy has been stable and improving ; it has maintained a normal monetary policy ; its balance of payments is sound and stable ; and its foreign exchange market is maturing. all these factors will continue to provide strong support for the stability of the rmb exchange rate. on the other hand, there are 1 / 5 bis - central bankers'speeches a number of destabilizing factors and uncertainties in the external environment affecting the rmb exchange rate. first