China bank regulator warns of ‘bubble’ in foreign markets – business live


I’m worried the bubble problem in foreign financial markets will one day pop,” Guo Shuqing, chair of the China Banking and Insurance Regulatory Commission, told local media at a briefing in Beijing.

He pointed to gains in US and European markets enabled by ultra-loose monetary policy, which he said had “seriously diverged” from the real economy. “China’s market is now highly linked to foreign markets and foreign capital continues to flow in”

“China’s market is now highly linked to foreign markets and foreign capital continues to flow in”, Guo said, according to China’s state-backed Securities Times, in a nod to global investors’ appetite for Chinese stocks and bonds.

He added that while China could handle the scale and speed of inflows, “we must prevent volatility in [China’s] domestic financial market from becoming too great”.



READ SOURCE

READ  SoftBank Vision Fund set for new portfolio champion with Coupang IPO

LEAVE A REPLY

Please enter your comment!
Please enter your name here