PBOC Said to Be Set for Watchdog Role

The transcript discusses the evolution of financial regulation in China, highlighting the coordinated efforts of multiple regulators, including the PBOC. It compares China's approach to the US's pre-crisis regulatory outlook and emphasizes the importance of the National Financial Work Conference, a significant event held every five years to address financial oversight and set long-term objectives. The discussion also touches on China's focus on stability, regulation, and deleveraging, with recent actions by the banking regulator to manage exposure to active companies abroad.

What is the main goal of China's current approach to financial regulation?

• To eliminate all financial regulations

• To focus solely on international investments

• To maintain a balkanized regulatory system

• To create a more coordinated regulatory framework

What is the primary purpose of the National Financial Work Conference?

• To focus on international trade agreements

• To evaluate the performance of local banks

• To address major financial oversight issues and set long-term objectives

• To discuss short-term financial policies

How often is the National Financial Work Conference held?

• Every year

• Every two years

• Every five years

• Every ten years

What recent action did the Chinese banking regulator take regarding banks?

• Increased interest rates

• Introduced new taxes on banks

• Inquired about banks' exposure to active companies abroad

• Reduced the number of banks

What trend has been observed in China's M2 money supply?

• It has been fluctuating unpredictably

• It has been decreasing

• It has remained stable

• It has been increasing rapidly