China flags greater oversight as financial risks multiply amid soaring commodity prices
- China’s top financial regulator says there must be a ‘full assessment’ of financial threats facing the country
- Rising commodity prices, inflation, and international economic uncertainty are all contributing to unease in Beijing
China’s leadership is growing increasingly alert to financial risks amid rising commodity prices, potential property bubbles in some large cities and volatility in cryptocurrency speculation, signalling tighter oversight and more intervention in coming months to maintain stability.
At a meeting chaired by Vice-Premier Liu He on Friday, the Financial Stability and Development Commission (FSDC) said China must make a “full assessment” of financial threats and act firmly to prevent them affecting social stability.
The Politburo – the Communist Party’s top decision-making body – began to subtly change its tone in late April, when it said the 18.3 per cent annual rise in first-quarter gross domestic product had created a window to address outstanding economic risks.
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Since then, soaring prices for everything from industrial goods to agricultural commodities, caused by strong post-coronavirus demand around the world, have ratcheted up official concern.