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China Central Bank in Investment Talks with JPMorgan, HSBC

Beijing has been courting foreign capital as its post-pandemic recovery stumbles amid weak overseas demand and an ailing property sector


China's Central Commission for Discipline Inspection is investigating PBOC former head of monetary policy Sun Guofeng.
The People's Bank of China (PBOC). Photo: Jason Lee/Reuters

 

China’s central bank and forex regulator met foreign financial institutions including JPMorgan, HSBC on Monday as Beijing bids to revive foreign trade and investment.

Deutsche Bank and Tesla were also among those attending the meeting, according to a statement by the People’s Bank of China (PBOC).

The world’s second-largest economy has lost steam since the second quarter and showed only tentative signs of stabilisation last month with policy support.

China will improve its policies, and create a market-oriented and international-level business climate, PBOC Governor Pan Gongsheng was quoted as saying in the statement.

 

Also on AF: China Must Change Course, For Its Own Sake And World’s: IMF

 

Pan said China will also continue to improve the quality and efficiency of its financial services.

The firms at the meeting called on Beijing to optimise its business environment, the statement said.

China has sought to court foreign capital as its economic recovery from the Covid-19 pandemic slows in the face of tepid overseas demand and property weakness.

In a bid to attract more foreign investment, China’s State Council, its cabinet, in August issued guidelines on overseas capital, saying authorities should increase protection of the rights and interests of outside investors, including strengthening enforcement of intellectual property rights.

Actualised foreign direct investment into China fell 5.1% year-on year to 847.2 billion yuan ($116 billion) in the first eight months of 2023, the commerce ministry said on Friday.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

China Central Bank Seen Boosting Liquidity, Keeping Rates Steady

China Central Bank Vows Support for Private Sector, Developers

China’s Pick of PBOC Boss Points to Financial Stability Concern

PBOC Cuts Lending Rate as China’s Economy Slows in May

 

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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