On January 7, the People s Bank of China issued PBC Announcement [2009] No.1, removing the restriction that a bond has to be over 500 million yuan to be traded on the inter-bank bond market and paving the way for small-scale bond financing by small- and medium-sized enterprises.
On January 20, the People s Bank of China and the Hong Kong Monetary Authority announced the establishment of a bilateral currency swap agreement. The agreement has a term of three years and provides 200 billion yuan/227 billion HK dollars.
On January 22, the People s Bank of China issued the Notice on Issues Concerning Development of Shanghai Inter-bank Offered Rates (PBC Document No. 24 [2009]), to continuously improve the Shibor formation mechanism and promote the Shibor as a pricing benchmark and as a reference for the pricing of financial products.
On February 5, the People s Bank of China reported to the Finance and Economy Committee of the National People s Congress on implementation of monetary policy in 2008.
On February 8, the People s Bank of China and the Bank Negara Malaysia announced the establishment of a currency swap agreement, which has a term of three years and provides 80 billion yuan/40 billion ringgit.
On February 9, the People s Bank of China released the Notice on Improving Management of Central Bank Lending to the Agricultural Sector to Support Spring Plowing and to Step Up Credit Support to the Agricultural Sector to improve policy for central bank lending to support agriculture and to add a 10 billion yuan quota of central bank lending to support agriculture in the western and main grain-producing areas.
On February 23, the China Monetary Policy Report, Quarter Four, 2008 was released.
On February 26-27, the People s Bank of China held the Money, Credit, and Financial Market Work Conference.
On March 3, the 15th regular meeting of the PBC Central Bank Bill Redemption Examination and Assessment Committee for the pilot rural credit cooperatives (RCCs) reform decided to redeem a quota of 3.6 billion yuan of special bills from RCCs located in 98 counties (county-level cities) of 14 provinces, including Anhui province.
On March 11, the People s Bank of China released Announcement No. 4 [2009] approving consolidation by the National Association of Financial Market Institutional Investors (NAFMII) of the Master Agreement for the Trading of Financial Derivatives on the Inter-bank Market and the Master Agreement for RMB/Foreign Exchange Derivatives on the Inter-bank Foreign Exchange Market and release of an updated Master Agreement for Trading Financial Derivatives on the Inter-bank Market, bringing all OTC trading of financial derivatives under one uniform master agreement.
On March 11, the People s Bank of China and the National Bank of the Republic of Belarus announced the establishment of a currency swap arrangement. The agreement has a term of three years and provides 20 billion yuan/8000 billion BYR.
On March 17, the State Administration of Foreign Exchange released the Notice on the Decision regarding Short-term External Debt Quotas for Financial Institutions in 2009 (SAFE Document No.14 [2009]). The SAFE increased the short-term debt quotas of financial institutions in 2009, emphasizing the increments would be used entirely for financing imports and exports of domestic enterprises to support the healthy and stable development of China s foreign trade.
On March 18, the People s Bank of China released Announcement [2009] No.5, allowing fund management companies to open bond accounts on the inter-bank bond market under the category of a specific asset management portfolio and laying out the provisions for their operations.
On March 18, the People s Bank of China, jointly with the China Banking Regulatory Commission, released the Opinions on Improving the Credit Structure to Boost Economic Growth (PBC Announcement No.92 [2009]), calling on the PBC system and all financial institutions to implement the CPC Central Committee s and the State Council s Ten Opinions on expanding domestic demand and promoting economic growth and the Opinions on Promoting Economic Growth by the Financial Sector (No.126 [2008]), to earnestly implement the moderately loose monetary policy so as to promote sound and relatively rapid economic growth.
On March 23, the People s Bank of China and the Bank of Indonesia announced the establishment of a currency swap arrangement. The arrangement has a term of three years and provides 100 billion yuan/175 trillion IDR.
On March 25, the People s Bank of China released the Administrative Procedures for the Issuance of Financial Bonds on the Inter-bank Bond Market (PBC Announcement No.6 [2009]), further standardizing and improving management of the issuance of financial bonds, improving the transparency of approval for the issuance of financial bonds, and enhancing market discipline and risk-sharing mechanisms.
On March 26, the People s Bank of China released the Administrative Measures on the Registration, Trust Management, and Settlement of Bonds on the Inter-bank Bond Market (PBC Decree No.1 [2009]) to standardize bond registration, trust management, and settlement.
On April 8, the 56th State Council executive meeting announced a pilot program designed to allow exporters and importers in five cities, i.e. Shanghai, Guangzhou, Shenzhen, Zhuhai, and Dongguan, to settle cross-border trade deals in renminbi (yuan).
On April 10, the Monetary Policy Committee of the PBC convened its first quarter meeting of 2009.
On April 15, the PBC reported to the Economic and Financial Committee of the National People s Congress on the conduct of monetary policy during the first quarter of 2009.
On May 6, the China Monetary Policy Report, Quarter One, 2009 was released.
On May 13, the People s Bank of China and the China Banking Regulatory Commission held a symposium in Beijing on money and credit work to guide financial institutions to appropriately extend credit, further optimize the credit structure, and balance financial support for economic growth and prevention of financial risks.
On May 14 and June 24, with the agreement of the State Council, the People Bank of China approved the Bank of East Asia (China) and the Hong Kong and Shanghai Banking Corporation (China), two Hong Kong-funded banks incorporated in the mainland, to issue renminbi bonds of 4 billion yuan and 3 billion yuan respectively in Hong Kong.
On May 26, the 16th regular meeting of the PBC Central Bank Bill Redemption Examination and Assessment Committee for the pilot rural credit cooperatives (RCCs) reform decided to redeem a quota of 2.7 billion yuan of special bills from RCCs located in 39 counties (county-level cities) of 12 provinces (autonomous regions and municipalities), including Fujian province.
On May 27, the China Regional Financial Performance Report (2008) was issued.
On June 10, the State Administration of Foreign Exchange released the Notice on Further Improving Administration of Foreign Trade Credit Registration and Online Verification of Export-related Foreign Exchange Collection and Settlement for Enterprises (SAFE General Affairs Department, Document No.78 [2009]), clarifying the responsibilities for registration and administration of trade credit, improving the online verification system for export-related foreign exchange collection and settlement, promoting trade facilitation, and helping stabilize external demand.
On June 24, the PBC Monetary Policy Committee convened its second quarterly meeting of 2009.
On June 29, the new system for local currency transactions on the inter-bank market was successfully launched.
On July 1, the People s Bank of China (PBC), the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation, and the China Banking Regulatory Commission (CBRC) jointly issued public announcement (No.10 [2009]) promulgating the Administrative Rules on the Pilot Program for RMB Settlement of Cross-border Trade Transactions. These Rules were formulated to regulate the settlement behavior of pilot enterprises and commercial banks and to prevent risks so as to facilitate trade and promote the progress of the pilot program.
On July 3, the People s Bank of China released the Regulations for Implementing the Administrative Rules on the Pilot Program for RMB Settlement of Cross-border Trade Transactions (PBC Document No. 212 [2009]) to support full implementation of the Rules.
On July 13, the State Administration of Foreign Exchange released the Notice on Issues Regarding Declaration of Balance of Payments Statistics for RMB Settlement of Cross-Border Trade Transactions (SAFE General Affairs Department, Document No. 90 [2009]) to define the relevant issues and facilitate the relevant business of the pilot enterprises and banks.
On July 15, the People s Bank of China reported to the Economic and Financial Committee of the National People s Congress on the conduct of monetary policy during the first half of 2009.
In July, the PBC issued central bank bills to some commercial banks that were experiencing a rapid growth of loans so as to guide stable and appropriate loan growth.
On August 5, the China Monetary Policy Report, Quarter Two, 2009 was released.
On September 1, the People s Bank of China and the China Banking Regulatory Commission jointly issued Announcement (No.14 [2009]), specifying the conditions that must be met by auto financing companies and financial leasing companies before they are allowed to issue bonds and defining the issuance process.
On September 2, the 17th regular meeting of the PBC Special Central Bill Redemption Examination and Assessment Committee for the pilot rural credit cooperatives (RCCs) reform decided to issue 400 million yuan worth of special central bank bills to RCCs in 5 counties (and county-level cities) in Liaoning province and to redeem special central bank bills issued to RCCs in 26 counties (and county-level cities) in Sichuan province, with a total quota of 500 million yuan.
On September 9, the People s Bank of China, the Ministry of Commerce, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission, and the State Administration of Foreign Exchange jointly issued the Opinions on Ramping Up Financial Support to the Outsourcing Services Industry (PBC Document, No.284 [2009]) to arrange for measures to step up financial support for industrial relocation and upgrading and to improve financial support to the outsourcing services industry.
On September 28, the Monetary Policy Committee of the PBC convened its third quarterly meeting of 2009.
On October 15, the PBC reported to the Economic and Financial Committee of the National People s Congress on the conduct of monetary policy during the first three quarters of 2009.
On November 4, Monetary Policy Department II of the PBC was established.
On November 11, the China Monetary Policy Report, Quarter Three, 2009 was released.
On November 11, the State Administration of Foreign Exchange issued the Notice on the Pilot Work on Individual Franchise Foreign Exchange Business, (SAFE Document No. 54 [2009]) to improve individual foreign exchange services and satisfy the growing demand by individuals for foreign exchange services.
On November 12, under the guidance of the People s Bank of China, the National Association of Financial Market Institutional Investors (NAFMII) issued the Guidelines for the Composite Bill Business of Small- and Medium-sized Non-financial Firms on the Inter-bank Bond Market.
On November 23, the 18th regular meeting of the PBC Special Central Bank Bill Redemption Examination and Assessment Committee for the pilot rural credit cooperatives (RCCs) reform decided to redeem special central bank bills issued to RCCs in 22 counties (county-level cities) in 11 provinces including Sichuan province, with a total quota of 4 billion yuan.
On November 28, the Interbank Clearing House Co. Ltd. was formally established in Shanghai.
On December 12, the Monetary Policy Committee of the PBC convened its fourth quarterly meeting of 2009.
On December 22, the People s Bank China, the China Banking Regulatory Commission, the China Securities Regulatory Commission, and the China Insurance Regulatory Commission jointly released Guiding Opinions on Further Strengthening Financial Services With a View to Supporting the Adjustment and Rejuvenation of Some Key Industries and Restraining Excess Capacity in Other Industries (PBC Document No.386 [2009]). The Opinions called on the financial sector to satisfy the reasonable demands for funds by some key industries during their industrial adjustment and rejuvenation, to strive to boost domestic demand, to optimize the credit structure, to promote the shift in the economic development mode and the economic structural adjustment, to eliminate backward production capacity, to improve the quality and efficiency of economic development, and to maintain the stable and sustainable development of the national economy.
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