The People’s Bank of China is emphasising a balanced approach to maintaining a stable yuan, with interventions and policy adjustments aimed at bolstering economic resilience amid global uncertainties ahead of the central economic work conference.
According to the original report in the People’s Daily, People’s Bank of China governor Pan Gongsheng urged that China maintain a sound monetary system able to withstand external shocks and systemic risks, signalling a policy tilt toward stability ahead of this month’s central economic work conference. In an editorial, Pan said monetary policy must balance internal and external pressures, “primarily taking into account domestic economic and financial conditions”, while also factoring in the “spillover effects” from other economies.
Pan also called for “continuously improving the yuan’s exchange-rate-formation mechanism”, adding that authorities should “ensure the exchange rate plays its role as an automatic stabiliser for macroeconomic adjustment and the balance of payments, and to create favourable conditions for implementing monetary policy with autonomy and effectiveness.” The commentary follows a series of senior officials’ articles in state media that frame Beijing’s implementation of directions set at October’s fourth plenum for the 15th five-year plan.
Industry data and recent market moves suggest those words are being matched by action. Reuters reported that major state-owned banks have been buying U.S. dollars in the onshore spot market to slow recent yuan gains , an intervention that left one-year dollar/yuan swap points lower and pushed the yuan down slightly after the move and a softer-than-expected midpoint set by the central bank. According to those sources, the banks’ approach , not recycling the dollars back into the swap market , appears aimed at tightening dollar liquidity and raising the cost of long-yuan positions.
That tactical intervention sits alongside broader signals from the central bank that policy will be adjusted to support growth. In its fourth-quarter monetary policy report, the People’s Bank said it would use tools including interest-rate adjustments and reserve requirement flexibility to ensure ample liquidity, stabilise the yuan and encourage a reasonable recovery in prices. Reuters coverage noted the bank’s emphasis on addressing weak domestic demand and a range of potential risks brought on by global economic changes.
China’s forex regulator has made similar commitments. Speaking at the Lujiazui Forum in June, State Administration of Foreign Exchange chief Zhu Hexin promised improvements to China’s capacity to manage forex volatility and flagged a new evaluation mechanism for forex management policies designed to attract more stable foreign investment. Those measures were framed as part of a broader effort to bolster economic resilience to external shocks.
Pan has also voiced criticisms of international trade tensions. At an IMF steering committee meeting earlier this year he condemned what he described as the United States’ “recent abuse” of tariffs for destabilising the global financial system, arguing for stronger global policy coordination , a stance reported by Reuters that underscores Beijing’s sensitivity to cross-border spillovers when setting domestic monetary strategy.
Market commentators say Beijing’s combined messaging and selective interventions point to a twin objective: anchoring the yuan so it can act as an “automatic stabiliser”, while retaining enough flexibility to smooth external shocks without ceding control over domestic monetary conditions. CNBC quoted Pan in February saying a stable yuan is “key to global financial and economic stability” and that China would continue to let market forces play a decisive role in exchange-rate formation even as policymakers shore up buffers.
As authorities prepare for the central economic work conference, the narrative from state organs and regulators is consistent: prioritise domestic stability, refine the exchange-rate mechanism so the yuan can help cushion external fluctuations, and be ready to deploy conventional monetary tools to support growth. How those principles translate into concrete policy , the timing, scale and mix of interventions in FX markets, rates and liquidity , will be watched closely by investors and trading partners for signs of how Beijing plans to navigate a fraught global backdrop while advancing its domestic agenda.
- https://www.scmp.com/economy/global-economy/article/3335191/chinas-central-bank-vows-strong-breakwaters-shield-external-shocks?utm_source=rss_feed – Please view link – unable to able to access data
- https://www.scmp.com/economy/global-economy/article/3335191/chinas-central-bank-vows-strong-breakwaters-shield-external-shocks – In an editorial for the People’s Daily, People’s Bank of China Governor Pan Gongsheng emphasised the necessity for China to maintain a robust monetary system resilient to external shocks and systemic risks. He stated that monetary policy should primarily consider domestic economic and financial conditions while also accounting for the ‘spillover effects’ from other economies. Pan highlighted the importance of continuously improving the yuan’s exchange-rate-formation mechanism to ensure the exchange rate functions as an automatic stabiliser for macroeconomic adjustment and the balance of payments. ([scmp.com](https://www.scmp.com/economy/global-economy/article/3335191/chinas-central-bank-vows-strong-breakwaters-shield-external-shocks?utm_source=openai))
- https://www.reuters.com/business/finance/china-state-owned-banks-soak-up-dollars-slow-yuan-gains-sources-say-2025-12-04/ – China’s major state-owned banks have actively purchased U.S. dollars in the onshore spot market to slow the yuan’s rise, which reached a 14-month high. Unlike their usual practice, the banks did not reinvest the dollars in the swap market, likely aiming to tighten dollar liquidity and raise the cost of holding long yuan positions. This intervention led to a drop in one-year dollar/yuan swap points, signalling higher costs for yuan investments. The yuan weakened slightly after news of the intervention and a soft midpoint setting by the People’s Bank of China. ([reuters.com](https://www.reuters.com/business/finance/china-state-owned-banks-soak-up-dollars-slow-yuan-gains-sources-say-2025-12-04/?utm_source=openai))
- https://www.reuters.com/world/china/chinas-central-bank-pledges-adjust-policy-support-growth-2025-02-13/ – The People’s Bank of China announced plans to adjust its monetary policy to bolster economic growth amid increasing external and domestic challenges. In its fourth-quarter monetary policy report, the bank noted deepening impacts from global economic changes, weak domestic demand, and various potential risks. To address these, it intends to fully utilise monetary tools such as interest rate adjustments and changes to the bank reserve requirement ratio. The central bank aims to ensure ample liquidity, stabilise the yuan exchange rate, and encourage a reasonable recovery in prices. ([reuters.com](https://www.reuters.com/world/china/chinas-central-bank-pledges-adjust-policy-support-growth-2025-02-13/?utm_source=openai))
- https://www.reuters.com/markets/currencies/chinas-forex-regulator-vows-fend-off-external-shocks-2025-06-18/ – On June 18, 2025, China’s foreign exchange (forex) regulator reaffirmed its commitment to maintaining a stable yuan and mitigating external financial shocks and risks. Speaking at the Lujiazui Forum in Shanghai, Zhu Hexin, the head of the State Administration of Foreign Exchange, highlighted improvements in China’s capacity to manage forex market volatility. He also announced plans to introduce a new evaluation mechanism for forex management policies and enhance regulatory frameworks for qualified foreign investors. These measures aim to bolster economic resilience and attract more stable foreign investment. ([reuters.com](https://www.reuters.com/markets/currencies/chinas-forex-regulator-vows-fend-off-external-shocks-2025-06-18/?utm_source=openai))
- https://www.reuters.com/world/china/china-criticizes-us-recent-abuse-tariffs-2025-04-25/ – At the International Monetary Fund’s steering committee meeting, China’s central bank governor, Pan Gongsheng, strongly criticised the United States for its ‘recent abuse’ of tariffs, accusing it of destabilising the global financial system and violating international trade norms. Pan argued that these actions undermined multilateral governance, disrupted global economic order, and hurt emerging and developing nations. Despite signs of a potential easing in the trade war—such as China exempting some U.S. imports from its tariffs—tensions remain, and Beijing denied U.S. President Trump’s claims of renewed negotiations. Pan emphasised the need for global policy coordination and trade liberalisation. ([reuters.com](https://www.reuters.com/world/china/china-criticizes-us-recent-abuse-tariffs-2025-04-25/?utm_source=openai))
- https://www.cnbc.com/2025/02/16/chinas-central-bank-governor-says-stable-yuan-key-to-global-financial-stability.html – China’s central bank governor, Pan Gongsheng, stated that a stable yuan currency has been key to global financial and economic stability and that Beijing will continue to let the market play a decisive role in deciding the exchange rate. He noted that while most currencies have fallen against the dollar, the yuan has remained stable. Pan also mentioned that China is increasingly prioritising consumption, implementing pro-consumption policies such as increasing household income and providing subsidies. ([cnbc.com](https://www.cnbc.com/2025/02/16/chinas-central-bank-governor-says-stable-yuan-key-to-global-financial-stability.html?utm_source=openai))
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative was first published on December 4, 2025, in the South China Morning Post. Similar content has appeared in state media, such as People’s Daily, on January 14, 2025, and September 22, 2025, focusing on the People’s Bank of China’s commitment to maintaining currency stability. The report includes recent data and quotes, indicating a high freshness score. However, the presence of similar narratives in state media suggests a potential for recycled content. The article is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The narrative was not republished across low-quality sites or clickbait networks. No earlier versions show different figures, dates, or quotes. The article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged.
Quotes check
Score:
9
Notes:
The direct quotes from Pan Gongsheng in the report appear to be original, with no identical matches found in earlier material. This suggests potentially original or exclusive content. No variations in quote wording were noted.
Source reliability
Score:
9
Notes:
The narrative originates from the South China Morning Post, a reputable organisation. The People’s Bank of China, mentioned in the report, is a verifiable entity with a public presence and legitimate website.
Plausability check
Score:
8
Notes:
The claims made in the narrative are plausible and align with recent actions by the People’s Bank of China, such as interventions to stabilise the yuan. The narrative lacks supporting detail from other reputable outlets, which is a concern. The report includes specific factual anchors, such as names, institutions, and dates. The language and tone are consistent with the region and topic. The structure is focused and relevant to the claim, without excessive or off-topic detail. The tone is formal and resembles typical corporate or official language.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, with original quotes and a reliable source. While similar content has appeared in state media, the report provides updated information and specific details, supporting its credibility.