The China-US Financial Working Group (FWG) held its fifth meeting in Shanghai on August 15-16, 2024. The meeting was co-chaired by Deputy Governor Xuan Changneng of the People's Bank of China and Assistant Secretary Brent Neiman of the U.S. Department of the Treasury, with relevant financial regulators participating, including National Financial Regulatory Administration, China Securities Regulatory Commission from the Chinese side, and the Federal Reserve, the Securities and Exchange Commission from the U.S. side.

The two sides had professional, pragmatic, candid and constructive discussions on topics including macroeconomic and financial developments, monetary policy, latest reform and opening-up measures announced by the Third Plenary Session of the 20th CPC Central Committee, financial stability and regulation, securities and capital market, cross-border payment and data, international financial institutions, financial technology, sustainable finance, anti-money laundering and countering the financing of terrorism (AML/CFT). They were briefed by technical expert groups on respective resolution frameworks for Global Systemically Important Banks (G-SIBs), operational resilience, climate risk scenario analysis, and regulation and supervision on cross-border supply of financial services. The two sides held the first FWG roundtable with financial institutions. Participating financial institutions from China and the U.S. exchanged views on relevant experiences and practices on sustainable finance and discussed potential areas of cooperation in this field.

During this FWG meeting, the People's Bank of China and the U.S. Department of the Treasury signed an exchange of letters on strengthening China-U.S. cooperation for preserving financial stability under the framework of the FWG. This will lay out a foundation for the two sides to enhance communication and reduce uncertainty in the event of financial stress. The two sides also exchanged a financial stability contact list to secure timely and smooth communication channel between their financial regulators in case of financial stress events and operational resilience risks. These efforts will contribute to global financial stability, which is a global public good that benefits not only China and the U.S., but also the global economy. The People’s Bank of China also raised areas of concern to the U.S. Department of the Treasury.

The two sides agreed to continue to maintain communication.