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Summary | 5 Annotations
China’s central bank warned on Thursday of financial risks in the country that have accumulated over the years, as well as shocks from overseas uncertainties.
2021/04/01 14:03
These risks include “oscillation” in the stock and fixed income markets and potential bond defaults in real estate companies, said Zou Lan, director of the People’s Bank of China’s financial markets department.
2021/04/01 14:03
“The stock, bond and commodities markets face oscillation risks,” he said, according to a CNBC translation of his Mandarin-language remarks. “A small number of large-scale enterprise groups are still in a period of risks being exposed, middle and low-quality enterprises still face financing difficulties, and the risk of default is rather high.”
2021/04/01 14:03
The Chinese government announced last month it will target GDP growth of over 6% this year. Many economists said the conservative target gives policymakers the ability to address long-term problems such as a buildup of debt.mps._execAd("midresponsive");China’s debt-to-GDP ratio rose to 285% as of the end of the third quarter of 2020, up from an average of 251% between 2016 to 2019, according to a report from Allianz, citing analysis from its subsidiary Euler Hermes.
2021/04/01 14:03
Officials from the People’s Bank of China at Thursday’s press conference maintained that monetary policy would remain stable and supportive. Zou did not give specific details on how the financial risks he mentioned would be addressed.
2021/04/01 14:03