PBOC and China's FX Regulator Outline Economic Policies, Futures Reverse Losses

The People's Bank of China (PBOC) and China's foreign exchange regulator held a press conference addressing several key economic policies. The PBOC deputy governor stated that the bank will continue to implement supportive policies and increase support for the Chinese economy. The deputy also mentioned that they are still seeing some effects from the earlier Reserve Requirement Ratio (RRR) cut. Additionally, the PBOC will steadily push forward research and application of the digital yuan. The foreign exchange regulator deputy emphasized the prevention of risks from abnormal cross-border capital flows and the intention to better guide market interest rates around the policy rate. The regulator also plans to enrich the policy toolkit and improve policy transmission. Following these announcements, futures reversed some losses.