Comment: Pan Gongsheng is about to usher in the first major international stage test

Source: Bloomberg

Author: Jacob Gu, xiao Zibang

Pan Gongsheng, the governor of the People's Bank of China, will debut on the international stage next week, providing an excellent opportunity for global economic and financial leaders. It has a close contact with the President of the Central Bank of China to get valuable clues about its policy goals direction.Essence

It is expected that Pan Gongsheng will go to the International Monetary Fund Annual Meeting on Monday (October 9), Mallakash.This annual meeting is one week.This will be Pan Gongsheng's first major overseas itinerary since Yi Gang replaced Yi Gang as the governor of the People's Bank of China.

Pan Gongsheng shoulder the heavy responsibility of guiding China to spend a period of economic growth and defending its domestic financial system of $ 60 trillion (about S $ 8.2 trillion).Essence

This event will make this technical bureaucrat with US Treasury Secretary Yellen, IMF President Georkeva, and other important economic and financial interests.Pan Gongsheng had a first meeting with Yellen and Geurkeva in China before.

China Finance Minister Liu Kun is expected to attend the annual meeting.However, as Liu Kun is about to retire, Pan Gongsheng will become the main goal of those who seeks long -lasting influence in Beijing.

Gabriel Wildau, managing director of the consulting company in New York Teneo Holdings LLC, said: "Pan Gongsheng's main task will be to establish harmonious relations with global decision makers."He said that Pan Gongsheng needs to do this, "Rest it, the Chinese economy is not as serious as many foreign commentators and investors think."

The main point of conversation

When the real estate crisis and consumer and corporate confidence have weakened economic growth, economic leaders attending the meeting in Morocco may want to hear Pan Gongsheng's views on the Chinese economy.

Martin Rasmussen, a high -level strategist in Macro Research Company EXANTE DATA in London, said that he will closely pay close attention to Pan Gongsheng's wording of monetary policy, in order to find recent positive data to change the Chinese central bank's signs of economic views.

Evercore ISI, the general managing director of China Research in New York, said, saying that under the circumstances of the U.S. dollar, the President of the Central Bank of China may be questioned by the defense of the RMB exchange rate.The strategy of defending the RMB may damage exports but help to curb capital outflows.

Wang also said that a more important question may be "whether his big boss has drawn the bottom line for RMB and US dollars."

Debt negotiation

Given that China is the largest sovereign party in many developing economies, another issue of Pan Gongsheng will be the role of China in the negotiation of debt restructuring of developing countries in developing countries.

Because the holders of Chinese and private bonds oppose the guidance policy formulated by Western sovereign creditors represented by the Paris Club, many negotiations around debt reduction have shrouded the tense atmosphere in the past year.

Bert Hofman, Director of the China Bureau of the World Bank, said: "China wants to avoid being considered to prevent such reorganizations."

Hofman said that Pan Gongsheng and officials of the Ministry of Finance may propose how to resolve debt restructuring under a common framework.The framework enables the Paris Club's traditional creditor's rights and emerging debt countries (especially China) to sit in front of the same negotiating table.

Pan Gongsheng's predecessor Yi Gang previously said at the IFM's Spring Conference in Washington that China is willing to implement the common framework of the G20 debt disposal with various parties, and the multilateral development bank should make due contributions in debt disposal.