From the perspective of our country, the economy has had a good start and continues to recover and improve. The financial system remains stable and the financial market has demonstrated strong resilience. We will resolutely correct the pro-cyclical behavior of the market, resolutely deal with the behavior that disrupts the market order, and resolutely prevent the risk of overcorrection of the exchange rate. We will study and enrich the policy toolkit and introduce incremental policies in due course… On April 28, the Information Office of The State Council held a press conference to introduce the relevant situation of policies and measures for stabilizing employment and the economy and promoting high-quality development. At the conference, Zou LAN, the vice governor of the People’s Bank of China, introduced.

Regarding the market’s concerns about the impact of fluctuations in US Treasury bonds and the US dollar exchange rate, as well as financial services for private enterprises, Zou LAN responded one by one. Zou LAN said that China’s foreign exchange reserves aim at safety, liquidity and preservation and appreciation of value, achieving relatively effective diversification of investment portfolios. The impact of changes in a single market and a single asset on China’s foreign exchange reserves is generally limited.
Since the US government announced the implementation of “reciprocal tariffs” in early April, global economic and financial market turmoil has intensified. Among them, the global stock market was the first to be affected, with the US stock market experiencing a significant decline. The US Treasury bond market also experienced historic turmoil. From April 11th to 17th, the yield on the 10-year US Treasury bond soared by 2.92% that week, marking the biggest increase since 2001. Under the reverse movement of bond prices and yields, the prices of US bonds plummeted, causing many investors holding US Treasuries to experience a significant reduction in their assets.