China won’t revise its domestic
monetary policy, said Zhang Tao, director general of the
international department of the People’s Bank of China.
“As to China’s domestic monetary policy, we will not
change,” Zhang told reporters today in Cannes, France, before a
Group of 20 summit.
Premier Wen Jiabao said on Oct. 25 the government will
fine-tune economic policies as needed, and China said this week
it will lower the threshold for payment on value-added and
business taxes for small companies. The government may keep
“relatively easing” credit policy through the fourth quarter,
the China Securities Journal said today, citing unidentified
people in the banking industry.
Europe’s sovereign debt turmoil and the global economic
outlook have led the agenda for this week’s summit, as European
leaders urged Greek Prime Minister George Papandreou to spell
out how he intends to stick to the terms of a week-old bailout
plan after called for a referendum. Last month, French President
Nicolas Sarkozy said he would approach China about playing a
bigger role in the crisis-fighting strategy.
China has “confidence” in the European market, Zhang said
today. He also said China remains open to increased flexibility
of the yuan and will continue to “improve” its exchange-rate
regime.
Forex Management
Foreign exchange management in China is based on “the
principle of safety, liquidity and adding value,” Zhang said.
“Europe was, is and will be an important investment market in
the foreseeable future.”
China hopes for a quick resolution of issues raised by
Greece’s decision to call a referendum on its bailout, Vice
Finance Minister Zhu Guangyao told reporters at the same
briefing in Cannes.
“We hope the time of uncertainty will be reduced as much
as possible to protect market stability,” he said. Zhu said
it’s “too soon” for China to discuss further bond purchases
from Europe’s revamped rescue fund.
To contact the reporter on this story:
Zijing Wu in Brussels at
zwu17@bloomberg.net
Rebecca Christie in Brussels at
rchristie4@bloomberg.net;
To contact the editor responsible for this story:
James Hertling at
jhertling@bloomberg.net
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