BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/27
The PBoC aroused international attention when it said it was considering the possibility of allowing trading of foreign firm shares in China. Qualified foreign firms would be permitted to issue depository receipts (a standard way for firms to issue shares outside their home countries). The central bank did not, however, give further details or a time frame for the reform plan.
The PBoC said that monetary policy will become more flexible, but more targeted this year. The PBoC characterises its monetary stance as “prudent,” a term it has used since 2011. The central bank also promised to improve communication to increase policy transparency.