Yi Gang took over Zhou Xiaochuan as Governor of the Central Bank
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The central bank answered reporters’ questions

The Press Center of the First Session of the 13th National People's Congress held a press conference at the Multipurpose Hall of the Center of Media in March at the 10th of March (Friday), inviting the Governor of the People's Bank of China, Zhou Xiaochuan, Deputy Governor Yi Gang, and Deputy Governor. Pan Gongsheng, the head of the State Administration of Foreign Exchange, answered questions raised by Chinese and foreign reporters on issues related to "financial reform and development." Zhou Xiaochuan said that the global economy has recovered from the difficult and tortuous years of the financial crisis and has finally seen signs of recovery in many regions of the world. Therefore, the monetary policy of many important countries slowly withdrew from quantitative easing. ...[Details]

Why is Yi Gang? The reporters found out that deep industry qualifications, high theoretical levels, and a spirit of reform may be part of the reason. ...[full text]
Yi Gang said that the main task is to implement a sound monetary policy, while promoting financial reform and opening up, and to maintain the stability of the financial industry. ...[full text]
Yi Gang Introduction

Yi Gang, male, born in 1958, Doctor of Economics

From 1978 to 1980, studied at the Department of Economics, Peking University

From 1980 to 1986, majored in business administration at the University of Hamlin, USA, and majoring in economics at the University of Illinois, with a doctorate in economics.

From 1986 to 1994, he served as Assistant Professor and Associate Professor at the Department of Economics, Indiana University, USA.

Returned to China in 1994, and Lin Yifu, etc. sponsored the establishment of Peking University China Economic Research Center, Professor, deputy director, doctoral tutor

From 1997 to 2002, served as Deputy Secretary-General of the People’s Bank of China’s Monetary Policy Committee

From 2002 to 2003, he served as Secretary General of the Monetary Policy Committee of the People's Bank of China (Director-General Division) and Deputy Director of the Department of Monetary Policy.

In 2003, he served as Director of the Monetary Policy Department of the People's Bank of China

In July 2004, he served as member of the Party Committee of the People's Bank of China and Assistant to the President (period: from September 2006 to October 2007, he served as Party Secretary and Director of the People's Bank of China Business Management Department, and Director of the Beijing Foreign Exchange Management Department of the State Administration of Foreign Exchange)

In December 2007, he served as member of the Party Committee and deputy governor of the People's Bank of China

In July 2009, he served as member of the Party Committee and vice president of the People's Bank of China, director of the State Administration of Foreign Exchange and secretary of the Party Group.

In December 2015, he served as member of the Party Committee and Deputy Governor of the People's Bank of China

In March 2016, he served as Deputy Secretary and Deputy Governor of the Party Committee of the People's Bank of China

In March 2018, he served as Governor of the People's Bank of China

(Source: Central Bank website)

Yi Gang Review
From Yi Gang's "Review and Prospect of Monetary Policy" to See through the Train of Thought and Direction of the Central Bank in 2018

In January of this year, Yi Gang wrote an article in “China Finance” magazine. He talked about the review of monetary policy work in 2017 and the challenges and policy ideas of monetary policy regulation in 2018. From this we can get a glimpse of the central bank’s working ideas and directions for this year. ...[Details]

The new head of the central bank, Yi Gang, explained the “tight and moderate” monetary policy this year.

Yi Gang pointed out that from the perspective of liquidity, it should also be moderately tight and moderately stable. In terms of liquidity, it is mainly to see whether the market interest rate is stable and whether the entire excess reserve level is appropriate. The indicators in various aspects are not within a reasonable range. This is our consideration of “tight and moderate”. ...[Details]

Yi Gang: The tightness is mainly for the real economy

Yi Gang said that the tightness and moderation mainly depends on whether the real economy can be effectively supported by all parties in terms of the real economy. Can we not create an external environment that can prevent risks and can smoothly promote financial reforms? This will provide us with a neutral and moderate monetary and financial environment from the stage of high-speed growth to the stage of high-quality development. ...[Details]

Yi Gang: Most countries have played down M2 as a prediction target

Yi Gang pointed out that this year’s “Government Work Report” stresses that the growth of the broad money M2 and the scale of social financing should be a reasonable increase without mentioning the number and indicators. Market deepening and financial innovation make the correlation between M2 and the economy more vague, predictive uncertain. Most countries have played down M2 as a forecast target. In view of the new situation and the development requirements of the new era, we must pay more attention to activating the credit stock. ...[Details]

Yi Gang: Relaxation or cancellation of foreign capital ratio restrictions does not mean deregulation

Yi Gang stated that relaxing or canceling some foreign capital ratio limitations has actually reduced discriminatory treatment of foreign-funded institutions, reflecting the equal treatment of foreign and domestic institutions. This does not mean relaxing supervision. When foreign financial institutions are required to enter or conduct business, they must still exercise prudential supervision in accordance with relevant laws and regulations. In this way, by strengthening financial supervision and improving supporting regulatory mechanisms, we can still effectively prevent and defuse financial risks and maintain financial stability. ...[Details]

Yi Gang: The People's Bank of China and the Financial Industry must Implement the State Council's Deployment of Financial Openness

Yi Gang stated that the Party Central Committee and the State Council attach great importance to the work related to the opening of the financial sector to the outside world. The report of the Nineteenth Party Congress pointed out that opening up brings progress and closure is bound to lag behind. Therefore, we must implement the spirit of the Central Government. During the 16th meeting of the Central Financial Leadership Group and the Fifth National Financial Work Conference, President Xi also emphasized that expanding the opening up of the financial industry is an important aspect of our opening to the outside world. We must actively and steadily expand the opening up of the financial industry and arrange a reasonable opening order. . Therefore, the People's Bank of China and the financial industry must implement the deployment of the Party Central Committee and the State Council for the opening up of finance. ...[Details]

Yi Gang responded to whether the Fed raised interest rates: comprehensive consideration of the domestic economy and financial situation

As for whether or not to follow the Fed to raise interest rates, Yi Gang stated that we look at China’s monetary policy mainly based on the domestic economic and financial situation, and we must take comprehensive considerations. At the same time, cross-border capital flows are relatively balanced. In this regard, we must continue to promote the smooth convertibility of capital projects while also preventing risks. ...[Details]

Zhou Xiaochuan Review
Zhou Xiaochuan: In the past, low interest rates worldwide will come to an end

Zhou Xiaochuan stated that the global economy has recovered from the difficult and tortuous years of the financial crisis and has finally shown signs of recovery in many regions of the world. Therefore, the monetary policy of many important countries gradually withdrew from quantitative easing. First of all, this is a good thing. This good thing also means that the past global expansion of the number and low interest rates may gradually come to an end. ...[Details]

Zhou Xiaochuan: The future of traditional banknotes and coins may not exist one day

At present, there are preliminary classifications of the technical route for digital currency in the world, indicating that it may also have a variety of possible systems. It should be said that the development of digital currency is not only an inevitability of technological development. In the future, it may be that traditional forms of paper money and coins will gradually shrink, and may even exist one day. This possibility also exists. ...[Details]

Zhou Xiaochuan: It has now entered the phase of stable leverage and gradual de-levering. This trend is very clear

Zhou Xiaochuan said that everyone should have seen that the previously fast-growing debt situation has now stabilized and has entered a stage of stable leverage. The growth of broad money has fallen below the growth of nominal GDP, indicating that it has entered the total amount. The stage of stabilizing the lever and gradually reducing the lever. ...[Details]

Zhou Xiaochuan: Anti-risk and financial reforms are not antagonistic

Risk prevention and reform are not contradictory but should be consistent. Everyone also saw that it was because of the risks and the crisis that the international community had promoted the introduction of many new measures. Zhou Xiaochuan said that there are many major financial reforms in China, precisely because of the Asian financial turmoil, which allowed us to recognize risks and deficiencies and then made improvements. ...[Details]

Zhou Xiaochuan: Measuring the monetary policy loose and tightly observe the GDP is not enough

Zhou Xiaochuan stated that since the M2 indicator is constantly changing, mainly because of the changes in financial market structure and financial products, M2 is not a very accurate tool for measuring monetary policy tightening. More important indicators, we should still observe such indicators as inflation and employment. Not only must we observe GDP, but also the price level and the level of employment. This measures the looseness and tightness of monetary policy. ...[Details]

Zhou Xiaochuan: Some Financial Holding Companies Have False Capital Injection and Circular Capital Injection

Zhou Xiaochuan stated that some of the financial holdings that have emerged at the moment have led to the fact that some of the financial institutions under their control do not have real and complete capital, and there are some problems with false capital injection and circular capital injection in the society. "For financial holding companies, we are trying to formulate some basic rules, but we are still in preliminary exploration."...[Details]

How unforgettable and regretful is his long career? Zhou Xiaochuan: Fortunate to promote the reform of the gold

Zhou Xiaochuan's response to the “unforgettable and regretful moments in his long career as a governor” indicates that for so many years working in the financial system, there are too many things and it is difficult to pick out what is important and what is not. We are fortunate to work together with everyone in the financial reform and opening up and move forward. ...[Details]

Zhou Xiaochuan warned of blockchain speculation: Do not imagine overnight riches!

The rapid expansion of bitcoin products such as Bitcoin will have a negative impact on consumers and have an unpredictable effect on financial stability. The central bank did not recognize virtual currency such as Bitcoin as a retail payment tool and currently does not accept or approve related services. Zhou Xiaochuan pointed out that the supervision of virtual currencies in the future is dynamic, and that the supervision depends on the level of technological development and also depends on the results of local tests and assessments. It remains to be seen. ...[Details]

Zhou Xiaochuan: Central Bank will play a more important role in the new regulatory framework

Zhou Xiaochuan, Governor of the People's Bank of China, said that the information disclosed in the national financial work conference in July last year explained the main ideas of the financial reform, including the establishment of the State Council’s Financial Stability and Development Committee and its office on the People’s Bank, which all indicate that the People’s Bank of China will be The new financial regulatory framework plays a more important role. ...[Details]

Zhou Xiaochuan Promotes "Two Major Reforms"

During his tenure, Governor Zhou Xiaochuan made an indelible contribution to promoting the marketization of Chinese interest rates. His systematic engineering thinking and gradual reforms were also reflected in the process of market-based interest rate reform in China. The “2002 China’s Monetary Policy Implementation Report” published the general idea of ​​China’s interest rate marketization reform: first foreign currency, then domestic currency; first loan, and later deposit; long-term large amount, followed by short-term short-term, following the basic thinking of gradual reform. . Since the establishment of the interest rate liberalization reform plan in 1993, the central bank decided to no longer set a floating ceiling on deposit interest rates for commercial banks and rural financial institutions. The marketization of interest rates in China has basically been completed.

As early as in 1995 when Zhou Xiaochuan assumed the position of director of the foreign exchange administration bureau, China achieved convertibility under the current account and became a Chinese capital project. In 2016, the RMB officially joined the SDR and joined 40 entries on capital account opening made by China before the IMF. Many preparations have been made: such as promoting the trial of the Shanghai-Hong Kong stock market interconnection; promoting domestic financial institutions to issue RMB bonds overseas.

Internationalization of RMB. The international use of the renminbi has steadily expanded. At present, the renminbi has become the second-largest cross-border payment currency in China. There are 189 countries with cross-border renminbi receipts and payments in China. Currency authorities in more than 47 countries or regions hold renminbi financial assets in China. And incorporated into its foreign exchange reserves. In 2014, renminbi clearing arrangements were established in 10 countries including the United Kingdom and Germany; offshore renminbi bond markets such as Hong Kong Dim Sum bonds, Taiwan Treasury bonds, French Arc de Triomphe debt, and German Goethe debt were gradually developed. Supported the British government to successfully issue 3 billion yuan of national debt. It has newly signed or renewed bilateral exchange agreements with 13 foreign central banks or monetary authorities such as Switzerland, Russia and Canada.

Zhou Xiaochuan Takes 15 Years of Central Bank Records
time event
End of December 2002 Officially appointed as the Governor of the People's Bank of China.
Year 2003 We started the reform of the joint-stock system of China's large-scale commercial banks. By 2010, the four major state-owned commercial banks have successfully completed their listings, ranking among the top ten largest banks in the world.
July 21, 2005 The reform of the RMB exchange rate formation mechanism was formally initiated, and a managed, floating exchange rate system based on market supply and demand, with reference to a basket of currencies, was introduced.
July 2008 The State Council has approved the People's Bank of China to develop the offshore RMB market in accordance with the internationalization of the RMB and become a new engine for the internationalization of the RMB.
July 2009 China’s cross-border trade RMB settlement pilot project was officially launched, and in 2010 and 2011, the two trials were expanded to the entire country.
June 2010 The exchange reform of RMB was started again.
June 2013 China's financial market has experienced a liquidity “money shortage” and the central bank successfully handled this liquidity situation. The central bank implemented controls to maintain the stability and appropriateness of the banking system's liquidity, and guided the steady growth of monetary credit and social financing.
Beginning in 2014 The RMB global clearing network is frequently deployed. The
2015 The three major policy banks took over the reform; in August of the same year, the “New Exchange Reform” further improved the middle-price quotation mechanism, paving the way for the RMB to become an international reserve currency.
October 1, 2016 The RMB officially joined the International Monetary Fund Special Drawing Rights (SDR) currency basket. The renminbi became the fifth currency to join the SDR currency basket after the dollar, euro, pound sterling and yen.