1/4
Guo Shuqing, China's top banking regulator, is worried that "the bubble problem in foreign financial markets will one day pop. China’s market is now highly linked to foreign markets and foreign capital continues to flow in.”
ft.com/content/0c2c22…
Guo Shuqing, China's top banking regulator, is worried that "the bubble problem in foreign financial markets will one day pop. China’s market is now highly linked to foreign markets and foreign capital continues to flow in.”
ft.com/content/0c2c22…
2/4
Although foreign participation in Chinese markets is still too low to matter, he is right to worry. China's banking system is rigid, unstable, and largely insolvent, but it was never at much risk of breaking down because of the ability of regulators to isolate it and...
Although foreign participation in Chinese markets is still too low to matter, he is right to worry. China's banking system is rigid, unstable, and largely insolvent, but it was never at much risk of breaking down because of the ability of regulators to isolate it and...
3/4
restructure liabilities at will.
Over time, however, as Chinese financial markets become more integrated into global markets, it will be much harder to suppress adjustment in the domestic financial sector, and so they will become much more like those of typical...
restructure liabilities at will.
Over time, however, as Chinese financial markets become more integrated into global markets, it will be much harder to suppress adjustment in the domestic financial sector, and so they will become much more like those of typical...
4/4
developing countries: highly pro-cyclical on the way up, and even more pro-cyclical on the way down. I think in 2022 and 2023, this will become increasingly a major concern.
developing countries: highly pro-cyclical on the way up, and even more pro-cyclical on the way down. I think in 2022 and 2023, this will become increasingly a major concern.
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