China and the US agree on contacts to handle "financial stresses"

The Central Bank of China (NBK) said an agreement was reached at a meeting in Shanghai with the U.S. Treasury Department to appoint contact persons to address any future "financial stress events," a rare example of the world's two largest economies seeking common ground, Bloomberg reported.

Details

The parties also "exchanged lists of contacts on financial stability" during the fifth meeting of the so-called Financial Working Group, which was created after the visit of US Treasury Secretary Janet Yellen to China last year.

"The people's Bank of China and the US Treasury Department have signed an exchange of notes on strengthening cooperation between China and the US in the field of financial stability," according to the NSC report on the August 15-16 meeting. It also says that the countries " exchanged contact lists on financial stability.

The talks were the first meeting between senior U.S. and Chinese economic officials since Beijing's leadership outlined its long-term priorities last month at a conclave held twice a decade.

The meeting in Shanghai was scheduled to focus on topics such as macroeconomic and financial stability, IMF governance, and Capital Markets issues, according to a U.S. Treasury official who commented on the meeting before the meeting.

The agreements " will allow the financial management departments of both parties to maintain timely and uninterrupted communication channels and reduce uncertainty in the event of financial stress events and operational risks of financial institutions.

For the first time, financial institutions participated in the meetings, according to the report, which did not name the companies. The discussions covered sustainable financing and areas of possible cooperation, the report says.

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