PBOC Governor Pan Gongsheng Attends G20 Finance Ministers and Central Bank Governors Meeting

36Kr reports that Pan Gongsheng pointed out that escalating geopolitical conflicts remain the greatest uncertainty for the global economy. Significant volatility in some countries' sovereign bond markets and heightened valuation correction risks for AI-related assets are exacerbating financial fragility. Promoting modernization of financial regulation does not equate to deregulation and should not compromise the stability of the financial system or its risk-resistance capabilities. All parties should fully leverage the G20 finance and economic cooperation platform, strengthen coordination of macroeconomic policies, and work together to address global risks and challenges. Regarding global imbalances, all parties need a more comprehensive analytical perspective. One cannot focus solely on current accounts; attention must also be paid to financial channels. Particularly as global financial integration deepens, financial factors such as capital flows should be given greater importance in their impact on imbalances. Global imbalances cannot be addressed through exchange rate adjustments alone. Exchange rates are influenced by multiple factors including economic growth, monetary policy, financial markets, geopolitics, and sudden risk events, and do not have a simple linear relationship with current accounts. Both deficit and surplus countries should work together to achieve dynamic balance in the global economy.