China’s capital concerns prompt calls to prevent ‘disorderly expansion and barbaric growth’
- State media embraces ‘stability’ push as China’s economic headwinds pose ‘major risks’, including hot money flows
- Crackdown on Big Tech deemed ‘strong and effective supervision, regulation and guidance’, rather than ‘suppression’
China has doubled down on its de-risking campaign as the country’s economy faces strong headwinds, with “stability” being repeatedly stressed as the top priority in the nation’s economic policies.
In a commentary piece published on the People’s Daily website on Sunday, “preventing and dissolving major risks” was described as “an essential requirement and bottom-line mission to ensure the stable and healthy development of the country’s economy”.
The revelation of Evergrande’s debt crisis in the third quarter has amplified the financial risks China is facing, and the shock continues to rattle the investor community, both domestic and overseas.
Chinese authorities have been warning about the risks of hot money inflows and outflows amid the volatility of the global financial market.
Yi Huiman, chairman of China Securities Regulatory Commission, said in March that China would improve its regulatory system to “avoid passivity” on the issue, as China continues opening up its financial market to foreign investors.