Chinese regulators have changed their previous almost silent attitude towards trade frictions between China and the United States. Recently, they have expressed the same voice intensively and publicly: they are fully capable of dealing with economic and trade frictions between China and the United States, and the RMB exchange rate will remain stable.
Following a centralized and comprehensive response to Sino-US trade frictions and RMB exchange rate issues at the Wudaokou Global Financial Forum in Tsinghua last weekend, Guo Shuqing, Secretary of the Party Committee of the Central Bank of China and Chairman of the Banking and Insurance Regulatory Commission, received interviews with CCTV, Xinhua News Agency and People's Daily on Monday, and again called on the market that speculative short-selling of RMB would inevitably suffer huge losses and that the financial sector would not open to the outside world. The pause will not go backwards.
"From China's point of view, although the United States can impose tariffs to the limit level, this has limited impact on China's economy. The impact of economic and trade frictions is completely controllable, and we have the ability and confidence to deal with them well. He said in an interview with Xinhua News Agency.
He also reiterated that China's financial system can withstand the impact of external changes and that fear is unnecessary. "Current financial risks are generally controllable, from the past divergence to convergence. We are more proactive in dealing with risks, and we are dealing with them in a self-revolutionary way, not until a crisis occurs.
"The most important thing to deal with Sino-US economic and trade frictions is to do our own thing well." Guo Shuqing pointed out that for the financial industry, we should continue to deepen the structural reform of the financial supply side; at the same time, we will persevere in tackling financial market chaos, resolving the risks of shadow banks in an orderly manner, strengthening the real identification and effective disposal of non-performing assets, dealing with high-risk institutions in accordance with the law, and cracking down on illegal financial activities.
In recent years, China's financial regulatory authorities have dismantled shadow banks, focusing on products that violate laws and regulations, are nested in layers, have low transparency and have hidden risks. Data from the Banking and Insurance Regulatory Commission show that in the past two years, a total of 12 trillion yuan of high-risk assets have been depressed. The banking system has strengthened the disposal of non-performing assets, revitalized the credit stock, and disposed of non-performing loans totally 3.48 trillion yuan in two years.
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