China announced today that it would phase out high-risk institutions within the country. The government aims to avoid systemic financial risks and develops a strategy to achieve that objective. According to the People’s Bank of China (PBOC), the country has been trying to reform troubled small and medium-sized financial institutions for some time. It has made great strides in the fight against illegal financial activities, but much remains to be done. The PBOC has recently had an annual meeting to discuss the country’s financial stability.
The officials commented that the bank plans to continue using their guidance to ensure continued success in its battle against the criminal. It will be based on good planning, coordination and various policies. In addition, the PBOC stated that it needs to strengthen the current financial derisking mechanism and build its capacity. The bank wants to improve its monitoring system to receive an early warning. It will also rely on an evaluation system to determine risks.
Officials hope that these measures will help them improve legislation. The ultimate goal is to achieve financial stability and enhance the role of deposit insurance.
How is the Chinese economy doing after reopening?
The country suffered some serious economic drawbacks due to the coronavirus pandemic. It was one of the last economies to announce the reopening worldwide. Lockdowns and other pandemic restrictions caused substantial damage. However, analysts predicted that China would recover fairly quickly after getting rid of those restrictions.
On Wednesday, the spokesman for the statistics office, Fu Linghui, stated that the economy had definitely shown signs of a gradual recovery during the first two months, although it came in spurts. However, analysts anticipated faster growth than the new data showed. According to Linghui, both corporate and personal balance sheets suffered greatly during the Covid-19 pandemic. Therefore, they would need some time to repair.
!function (f, b, e, v, n, t, s) {
if (f.fbq) return;
n = f.fbq = function () {
n.callMethod ?
n.callMethod.apply(n, arguments) : n.queue.push(arguments)
};
if (!f._fbq) f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = ();
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)(0);
s.parentNode.insertBefore(t, s)
}(window, document, ‘script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘504526293689977’);
fbq(‘track’, ‘PageView’);
