UK economy vulnerable to Chinese market fallout
LONDON: Chancellor of the Exchequer George Osborne said the UK economy is vulnerable to international shocks as concerns about a slowdown in China caused stock markets across the world to tumble. "Everyone is concerned about the situation on the Asian financial markets," Osborne told reporters in Helsinki on Monday after a meeting with Finnish Finance Minister Alexander Stubb. "I would take it as a reminder that we are not immune from what happens in the world."
Osborne's comments underline a growing unease among investors and policy makers as a selloff in China's stock market spreads globally, sparking concern about the potential impact on the world economy. Chinese shares tumbled the most since 2007, commodities fell to a 16-year low and emerging-market currencies weakened to a record. "Obviously the Chinese authorities are doing all they can to stabilise those markets," Osborne said. Osborne, who is on a tour of Scandinavia to seek support for the U.K.'s push to reform the European Union ahead of a planned referendum on Britain's membership of the bloc by end-2017, said the situation highlighted the importance of other countries "keeping their own house in order."