People’s Bank of China (PBOC) Governor Pan Gongsheng proposed a backstop for nonbank redemptions and wider access to central bank funding at a Beijing forum Oct. 19, aiming to contain liquidity stress.
The proposals came at the opening of the 2026 Financial Street Forum, which runs through Oct. 22. The PBOC plans to develop the facility for large redemptions with other regulators for nonbank financial institutions.
Pan said the proposed tool would interrupt a cycle in which heavy withdrawals lead to bond sales that fuel further withdrawals. It would be available only under specified stress conditions and require high-grade collateral. Pan said collateral and other safeguards would preserve market discipline; the PBOC will publish operating terms in a later open-market notice, with no date announced.
Pan also said the bank would study moving its main open-market operation to an overnight term from seven days. He said the current term is out of step with the overnight rate the PBOC already targets. He gave no timetable for a change.
A separate proposal would extend the standing lending facility to foreign-owned banks incorporated in China, giving them access to a central bank liquidity channel. Pan also outlined a foreign-exchange pilot that would allow eight Chinese- and foreign-owned offshore renminbi clearing banks to trade on their own account in China’s domestic interbank market. He linked the pilot to rising overseas use of the renminbi and demand to manage the currency abroad.
Organizers scheduled 21 main and parallel sessions and three specialist conferences covering financial technology, insurance and investment. Before the forum opened, they forecast more than 400 guests from more than 40 countries and regions.
Founded in 2012, the forum became a national-level international professional forum in 2020, according to organizers. Its closing session is scheduled for Oct. 22, with global financial cooperation among the topics.
