People’s Bank of China Governor Zhou

earlier here

More now

  • Says no worries about external payments despite falls in FX reserves
  • Capital outflows could become reasonable if confidence improves on china economic growth, structural reforms
  • Interest rates will play a bigger role in monetary policy
  • Will gradually develop an interest rate corridor
  • Monetary policy will mainly focus on China's economic conditions, rather than external factors
  • Says he opposes competitive currency devaluations to boost exports
  • China will not use currency depreciation to boost exports

And:

  • Currency basket is becoming more important
  • US dollar has biggest weight in currency basket

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More:

  • China will prevent bubbles in financial markets
  • Chinese financial market volatility may stabilise if economic fundamentals improve
  • China needs to be vigilant about rising debt levels
  • China has strong desire to boost stock financing, reduce reliance on debt financing, but needs time
  • Still studying reform plans for financial regulatory regime
  • Monetary policy still effective for global economy but impact may decline
  • China should put more emphasis on fiscal policy, structural reforms
  • Should give banks more leeway in setting mortgage rates, down payments for clients
  • Efforts to control overall leverage should focus on the corporate sector