China’s foreign exchange market has shown signs of going back to a normal and rational state, said Chinese central bank governor Zhou Xiaochuan on Saturday.
Zhou said recent fluctuations in the foreign exchange market have been caused by several factors. One is that the Chinese economy was facing a downward pressure and the fluctuations in China’s financial and stock markets also affected market sentiment.
“Internationally, both Europe and Japan adopted quantitative easing policies, or QQE policy as Japan calls it, meaning quantitative and qualitative easing. Then Japan adopted negative interest rates, and the U.S. Fed raised interest rate again. The Fed’s interest rate rise was repeatedly discussed among investors. All these are factors that have caused sentiment fluctuations on the financial market,” Zhou said.
“As I see it, the current market sentiment is showing a trend of going back to a normal and rational state and refocusing on market fundamentals. In my opinion, the trend will continue if there are no special situations,” Zhou said.
CCTV’s Ming Tian filed this report from Beijing.
For more on China’s NPC and CPPCC, CCTV talked to current affairs commentator Victor Gao.