China, other G20 members contribute to global financial governance

HANGZHOU - China has worked closely with other G20 members in the fields of macroeconomic policy coordination, innovative growth and more effective global economic and financial governance, a Chinese central bank official said Thursday.

The People's Bank of China (PBOC) mainly participated in issues of strong, sustainable and balanced growth framework, international financial architecture, financial sector reforms, financial inclusion and green finance, PBOC Vice Governor Yi Gang said at a press conference.

G20 members agreed on an approach of "using all policy tools -- monetary, fiscal and structural -- individually and collectively" to support growth, according to Yi.

"This marks a milestone in the G20's recent history of macroeconomic policy coordination," Yi said.

China also led the efforts to build a more stable and more resilient international financial architecture, with the release of a report in this regard by the International Financial Architecture Working Group, which was resumed under China's G20 presidency, the vice governor said.

The report made several recommendations to improve the international financial architecture, including examining the broader use of Special Drawing Rights, strengthening the Global Financial Safety Net, improving debt restructuring processes and advancing the IMF quota and governance reform, Yi said.

"Global financial markets have seen bouts of turbulence since last year, but global financial system has remained sound and resilient," he said, adding that it reflected the effects of financial sector reforms since the global financial crisis.

This year, G20 members reached a consensus that financial reforms will focus on building an open and resilient financial system, summarizing elements of effective macro-prudential policies, developing robust financial market infrastructures and promoting financial inclusion.

The G20 also discussed green finance for the first time this year and established a G20 Green Finance Study Group, which released a report to identify challenges faced by green finance and provide voluntary options for countries to consider, Yi added.

On Wednesday, the PBOC and some other Chinese ministries unveiled a guideline for establishing a green financing mechanism to facilitate the economy's transition to sustainable growth.

Under the theme of "Toward an Innovative, Invigorated, Interconnected and Inclusive World Economy," this year's G20 summit is scheduled on Sept 4-5 in the eastern Chinese city of Hangzhou.