The U.S. and China agree to collaborate on maintaining financial stability.

• According to a People's Bank of China readout Monday, the U.S. and China have reached agreements on financial stability cooperation.
• The meeting of the U.S.-China Financial Working Group in Shanghai Thursday and Friday included an agreement.
• The conversation was described as "professional, pragmatic, candid, and constructive," according to a CNBC translation of the Chinese.

The People's Bank of China announced on Monday that the U.S. and China had signed agreements for cooperation on financial stability last week.

The working group, led by Brent Neiman and Xuan Changneng, reached an agreement during a meeting of the U.S.-China Financial Working Group in Shanghai on Thursday and Friday.

The PBOC readout stated that the two sides exchanged a list of individuals to contact in case of financial stress or risk events, while a Treasury readout was not available at the time.

The PBOC stated that representatives from the Federal Reserve, U.S. Securities and Exchange Commission, National Financial Regulatory Administration, and China Securities Regulatory Commission were present.

The CNBC translation of the Chinese statement described the conversation as "professional, pragmatic, candid, and constructive." The discussion covered capital markets, cross-border payments, and the two countries' monetary policy, particularly in relation to China's recently concluded Third Plenum meeting, as stated in the PBOC readout.

Experts assessed the resilience and climate risk of global banks and financial institutions.

Earlier this month, China's government bond market experienced increased volatility due to a report of PBOC intervention. Central bank governor Pan Gongsheng stated on Thursday via state media that China's financial risks have decreased, specifically in relation to local government debt.

The PBOC announced that the first roundtable meeting under the working group framework took place last week, bringing together U.S. and Chinese financial institutions. The institutions discussed potential cooperation opportunities and how finance could contribute to sustained growth, but no specific names were provided.

In September 2023, Janet Yellen, the U.S. Treasury Secretary, and He Lifeng, the Chinese Vice Premier, established economic and financial working groups. These groups allowed Treasury officials to meet regularly with the Ministry of Finance and PBOC at a vice minister level.