People's Bank of China Governor Pan Gongsheng: Using Multiple Tools to Maintain Ample Liquidity; Financial Law Draft Opens for Public Comments | Financial Morning Briefing

Everyday Editor | Zhang Yiming

| Monday, March 23, 2026 |

NO.1 People’s Bank of China Governor Pan Gongsheng: Using Multiple Tools to Maintain Ample Liquidity

On March 22, Pan Gongsheng, Governor of the People’s Bank of China, stated at the 2026 China Development High-Level Forum that the country will continue to implement a moderately easing monetary policy. By comprehensively using various monetary policy tools such as reserve requirement ratios, policy interest rates, and open market operations, liquidity will be kept ample.

Comment: Industrial and Commercial Bank of China International Chief Economist Cheng Shi said that current money market interest rates are at historic lows. China’s economy is at a critical stage of transitioning from old to new growth drivers. The focus of monetary policy operations has also undergone profound changes, shifting from aggregate regulation to coordinated efforts of total and structural tools. On one hand, tools like reserve ratio cuts and interest rate reductions remain key to stabilizing total demand and price expectations. On the other hand, structural monetary policies have become important in guiding financial resources toward positive external sectors such as technological innovation and green transformation.

NO.2 New Regulations for Overseas Lending! Upper Limit on Balances Increased

On March 20, the People’s Bank of China and the State Administration of Foreign Exchange jointly issued the “Notice on the Management Measures for Domestic Enterprises’ Overseas Lending” (hereinafter referred to as the “Notice”), further supporting and regulating domestic enterprises’ overseas lending activities. Compared to the previous draft for comments, the macro prudential adjustment coefficient in the “Notice” has been raised from 0.5 to 0.6, increasing the overall cap on overseas lending balances to better meet enterprises’ cross-border operational funding needs.

Comment: “The issuance of the ‘Management Measures for Domestic Enterprises’ Overseas Lending’ essentially results from adapting to changes in cross-border capital operations of enterprises and macro prudential management requirements,” said Wang Zhiyi, Director of the Cross-Border Finance Research Institute, in an interview with the Daily Economic News.

NO.3 First Financial Leasing Management Project Company Settles in Haikou After Hainan Free Trade Port Closure

According to Haikou Release, on March 20, China Agricultural Bank (Hainan) Leasing Co., Ltd. successfully completed registration and officially settled in the core leading area of Hainan Free Trade Port. Fully invested by China Agricultural Bank Financial Leasing Co., Ltd., a leading domestic financial leasing institution, this is the first financial leasing management project company established after the port’s closure, marking a significant breakthrough in Haikou’s financial leasing industry cluster development in the new phase of port operation.

Comment: The establishment of the first financial leasing management project company in Haikou signifies an important step forward in financial innovation and opening in the region. This development not only represents a notable breakthrough after the port’s closure but also reflects the strength and breadth of China’s financial market reform.

NO.4 Draft Financial Law Open for Public Comments

On March 20, the Ministry of Justice, People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange published the “Draft of the Financial Law of the People’s Republic of China” on their official websites, seeking public comments. The deadline for feedback is April 19, 2026.

Comment: Tian Xuan, a distinguished professor at Peking University and a National People’s Congress delegate, told the Daily Economic News that establishing fundamental financial laws is very necessary. Although there are many existing laws in the financial sector, most are standalone laws that are disconnected from new development trends and regulatory requirements, making it difficult to cover emerging business models and cross-sector risks. The formulation of a comprehensive financial law can systematically integrate regulatory rules, clarify responsibilities and boundaries, fill legal gaps, and strengthen regulatory coordination and risk transparency.

NO.5 Qiu Zhikun Approved as Chairman of Bank of China Samsung Life

Recently, the Beijing Regulatory Bureau of the National Financial Regulatory Administration approved Qiu Zhikun’s appointment as Chairman of Bank of China Samsung Life Insurance Co., Ltd. (hereinafter “Bank of China Samsung Life”). Qiu Zhikun has served as a director since August 2024 and as Party Secretary since October 2025.

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