China starts interbank clearing house in Shanghai, PBOC says

China's central bank has launched an interbank market clearing house in Shanghai. The house was opened on Saturday and aims to improve financial innovations in currency and bond trading.

It is China's latest move to rebound from the economic downturn, deepen financial reform, improve infrastructure and promote Shanghai as an international financial center. Central bank governor, Zhou Xiaochuan, said the clearing system will help prevent systematic risks and maintain the stability of the financial system. It will also improve clearing efficiency, reduce clearing costs and boost market supervision.