China will support more qualified overseas entities to issue panda bonds, as part of efforts to accelerate high-level opening-up of the financial markets, the People's Bank of China, the country's central bank, said on Wednesday.
In its third-quarter monetary policy report, the central bank also pledged to integrate and optimize cross-border renminbi settlement policies to make them easier to understand and implement.
On macroeconomic adjustments, the PBOC said it will strengthen countercyclical adjustments and maintain an appropriately accommodative monetary policy.
While optimizing short-term interest rate adjustment mechanisms, the central bank said it will also promote loan pricing reforms, from relying on the loan prime rates as benchmarks to more diversified benchmarks and guiding financial institutions to explore floating-rate loans linked to DR001.
It also vowed to enhance the resilience of the foreign exchange market, stabilize market expectations, prevent exchange rate overshooting risks and keep the RMB generally stable at a reasonable and balanced level.
The central bank will step up the use of the two monetary policy tools supporting the capital market, safeguarding the stable operation of the stock, bond and foreign exchange markets, it added.
