PBOC Sought Information From Fed as Chinese Stock Market Plunged
- Chinese central bank representative e-mailed Fed official
- Fed sent publicly available information on 1987 crash actions
Pedestrians walk past the People's Bank of China (PBOC) headquarters in Beijing, China, on Monday, March 7, 2016. Chinese small-cap stocks rallied after Premier Li Keqiang failed to mention a planned shift to a more market-based system for initial public offerings, a reform seen luring funds from existing equities.
Photographer: Qilai Shen/BloombergAs Chinese stocks plunged in July, an official from the nation’s central bank reached out to the Federal Reserve for information about how it handled the 1987 U.S. equities crash, newly disclosed e-mails show.
Song Xiangyan, the People’s Bank of China’s New York-based chief representative for the Americas, sent an e-mail on July 27 to Steven Kamin, director of the international finance division at the Fed board in Washington, to ask how officials handled the stock plunge, according to messages obtained from the Fed through a U.S. Freedom of Information Act request. The correspondence was reported earlier Monday by Reuters.