‘China volatil­ity won't shock Europe, fo­cus on growth’

The Pak Banker - - BUSINESS -

Chan­cel­lor of the Ex­che­quer Ge­orge Os­borne said the U.K. 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 sell-off in China's stock mar­ket spreads glob­ally, spark­ing con­cern about the po­ten­tial im­pact on the world econ­omy. Chi­nese shares tum­bled the most since 2007, com- modi­ties 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." "You don't know where the next cri­sis is com­ing from, where the next shock is go­ing to come from in the world," he said. "Bri­tain is a very open econ­omy, prob­a­bly the most open of the largest economies, and we are af­fected by what hap­pens, whether it is prob­lems in the euro zone, prob­lems in Asian fi­nan­cial mar­kets."

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