China’s new central bank chief shrugs off financial risks from trade war
Yi Gang tells forum in Beijing that banking, securities and insurance sectors are ‘fully capable of preventing and tackling’ any external shocks
China’s financial system will be able to withstand any external shocks stemming from a China-US trade war, the country’s new central bank chief said on Sunday.
Yi Gang, who was appointed governor of the People’s Bank of China last week, said the banking, securities and insurance sectors were “fully capable of preventing and tackling” external risks, news website Sina.com reported.
He was speaking after US President Donald Trump on Thursday decided to impose tariffs on US$60 billion of Chinese imports.
China retaliated with its own tariffs on US products, sending stock markets plunging on Friday in Hong Kong, Shanghai and Shenzhen. The Shanghai Composite Index fell 3.39 per cent while the CSI 300 – which tracks large caps listed in Shanghai and Shenzhen – shed 2.87 per cent. Hong Kong’s benchmark Hang Seng Index dropped 3.7 per cent.
But Yi downplayed the market reaction on Sunday, telling the China Development Forum in Beijing that the country knew how to handle risk.