The People's Bank of China (PBOC), the central bank, said Thursday that the financial market will
focus on market-oriented reforms this year.
"Market-based interest rate reform will be further promoted," according to the
China Financial Market Development Report 2016 unveiled on the central bank's website.
Market-oriented interest rate formation, regulation and transmission mechanism will be
improved to enhance central bank's regulatory capacity on interest rates, the report said.
The country will also raise the efficiency of the central bank operations, including standing
lending facility, medium-term lending facility and reverse repos.
China will also seek further improvement in market-based exchange rate formation mechanism
for its currency to increase the flexibility of the yuan's exchange rate against the US dollar,
the report said.
"Efforts will be made to actively guide and stabilize market expectations, balance cross-border
capital flows, and keep the yuan's exchange rate basically stable at a reasonable and
balanced level," it said.
China will also push forward standardized regulation and steady operation of the financial
market, taking measures including promoting the setup of a bond standards committee,
advancing healthy development of the asset securitization market, and improving
the multi-layered equity market.
"Pilot program of financial opening up and innovation in free trade zones will be moved
forward to promote the construction of a green financial system and steadily push forward
debt to equity swap on a market-based and legal basis," the report said.