China could already this year introduce a deposit insurance scheme and deregulate interest rates

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/12

In his speech to this month’s assembly of the National People’s Congress (NPC), central bank governor Zhou Xiaochuan said a deposit insurance scheme could be in place before July. Zhou noted that the proposed legislation on a deposit insurance scheme last November has enjoyed a positive reception, and given that deregulation of interest rates is linked to deposit insurance policy, both moves will likely take place this year.

A further goal this year is to open a linkage of the Hong Kong and Shenzhen stock exchanges similar to the arrangement already in place between the Hong Kong and Shanghai exchanges.

This year’s NPC otherwise offered few surprises on the economic front. Premier Li Keqiang, following his closing remarks to the NPC last Sunday (Mar. 15), held the now-familiar press conference and covered about the same ground as in previous years. Li mostly talked about economic growth, environmental issues and corruption. He repeated concerns expressed in his opening address about slowing economic growth and emphasised that reaching the 7 % growth target this year will not be easy for China.

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