At the third 2026 meeting of G20 finance ministers and central bank governors in Bangkok, People's Bank of China Governor Pan Gongsheng called for stronger macroeconomic policy coordination to address geopolitical conflict, volatile sovereign debt markets and the risk of corrections in artificial intelligence related asset valuations. He emphasized that modernizing financial regulation should not mean relaxing oversight or weakening financial stability and risk resilience. Pan argued that assessments of global imbalances should consider capital flows and other financial channels alongside current accounts, particularly as financial integration deepens. He rejected reliance on exchange rate adjustment, noting that exchange rates reflect multiple economic, monetary, market and geopolitical factors and do not have a simple linear relationship with current accounts. On the domestic outlook, Pan reiterated that the People's Bank of China will maintain a moderately loose monetary policy to support stable economic growth and financial market conditions.
People's Bank of China urges stronger G20 policy coordination and warns against easing financial regulation
People's Bank of China Governor Pan Gongsheng urged stronger G20 policy coordination and warned that regulatory modernization must not weaken financial stability. He called for global imbalances to be assessed through financial flows as well as current accounts, while reiterating that China will maintain a moderately loose monetary policy.