China is to launch an inter-bank clearinghouse, according to the Wall Street Journal. The Peoples Bank of China issued a release in Chinese over the weekend. According to the statement on the Banks website, the new clearinghouse will clear local and foreign currency financial markets.
There has yet to be a launch date set, although reports from the Shanghai Daily newspaper and Reuters claim that the clearinghouse has been set up in Shanghai, and was established by the Peoples Bank in cooperation with the China Foreign Exchange Trading System, China Government Securities Depository Trust & Clearing Co, China Banknote Printing and Minting Co and China Gold Coin Co.
On Saturday, Zhou Xiaochuan, governor of the Peoples Bank of China said, The clearing house will help improve clearing efficiency, reduce clearing costs and provide technical support for innovations in financial products.
The move came during a weekend where Xiaochuan met Jean-Claude Juncker, Prime Minister of the Grand-Duchy of Luxemburg and President of the Eurogroup, Jean-Claude Trichet, President of the European Central Bank, and Joaquin Almunia, European Commissioner for Economic and Monetary Affairs. According to a statement on the Peoples Banks website: They exchanged views on topics including economic situation, monetary policy and financial stability in China and the Euro area and expressed the intention to further strengthen exchange and cooperation.
The Wall Street report can be found here
Giles TurnerNews Editor