Central Bank of China: Support more overseas entities to issue panda bonds

China News Service, Beijing, November 11 (Tao Siyue) The Central Bank of China released China’s monetary policy implementation report for the third quarter of 2026 on the 11th. The report clarifies the main ideas for monetary policy in the next stage, including supporting more qualified overseas entities to issue panda bonds.

The report pointed out that the main idea of ​​the central bank's monetary policy in the next stage is to maintain reasonable growth of financial aggregates, adhere to the implementation of moderately loose monetary policy, enhance the forward-looking flexibility and pertinence of monetary policy, comprehensively use and timely adjust monetary policy tools based on domestic and foreign economic and financial situations and financial market operations; at the same time, pay close attention to changes in the monetary policies of major overseas central banks, and continue to strengthen the analysis and monitoring of liquidity supply and demand in the banking system and changes in the money market.

In terms of accelerating the construction of financial market institutions and high-level opening up, the report pointed out that it is necessary to accelerate the development of multi-level bond markets and steadily and prudently promote the development of over-the-counter bond business; support more qualified overseas entities to issue panda bonds; and continue to optimize the cross-border RMB policy system, integrate and optimize the cross-border RMB settlement policies released in the early stage, and improve the understandability and operability of the policy.

In addition, the report stated that it is necessary to maintain a good balance between internal and external interest rates and exchange rates. Specific measures include continuing to optimize the short-end interest rate control mechanism and unblocking monetary policy transmission channels; promoting the reform of loan interest rate pricing benchmarks, transforming from a relatively simple reference to the Loan Prime Rate (LPR) to a more diversified pricing benchmark; doing a good job in monitoring and analyzing cross-border capital flows, adhering to bottom-line thinking, implementing comprehensive policies, enhancing the resilience of the foreign exchange market, stabilizing market expectations, preventing exchange rate overshoot risks, and maintaining the basic stability of the RMB exchange rate at a reasonable and balanced level.