The US and China have signed an agreement to strengthen cooperation between the countries to ensure financial stability “amid intensifying fluctuations in global financial markets.”
The announcement was made by the People’s Bank of China and the country’s State Council on Monday, August 19, 2024. The signing took place in Shanghai during the US-China Financial Working Group meeting on Thursday and Friday (August 15–16).
In a statement, the Chinese government said the countries’ financial authorities had held a “professional, pragmatic, frank, and constructive” discussion on the issue. It also said the parties would maintain communication.
During the discussions, topics such as capital markets, cross-border payments, monetary policies, financial technology, sustainable finance, combating money laundering and terrorist financing were addressed.
Technical experts reportedly gave reports on globally systemically important banks, financial institutions’ operational resilience, and stress tests pertaining to climate risk, according to CNBC.
With the People’s Bank of China interfering, the transaction takes place in the midst of market volatility for Chinese government bonds. Pan Gongsheng, governor of the central bank, said on Thursday (August 15) that financial risks, including local government debt, had eased.
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