China com­mit­ted to fi­nan­cial reg­u­la­tions

The Star Early Edition - - BUSINESS REPORT -

FITCH Rat­ings said yes­ter­day that China’s re­newed com­mit­ment to con­tain fi­nan­cial risks sig­nals a pos­si­ble shift away from a high eco­nomic growth tar­get main­tained so far. Pol­icy mak­ers are likely to re­main cau­tious about tight­en­ing too ag­gres­sively the rat­ings agency said. Chi­nese reg­u­la­tors and of­fi­cials em­pha­sised their com­mit­ment to tighter fi­nan­cial reg­u­la­tions at the re­cent Na­tional Fi­nan­cial Work Con­fer­ence. Pres­i­dent Xi Jin­ping said at the con­fer­ence that a new Fi­nan­cial Sta­bil­ity and De­vel­op­ment Com­mit­tee would be set up un­der the State Coun­cil, or cabi­net, and that the cen­tral bank would take on a big­ger role in man­ag­ing fi­nan­cial mar­ket risks. But there is still some un­cer­tainty over whether the drive to ad­dress risks will con­tinue to take pri­or­ity if the econ­omy slows, Fitch said. “This may well sig­nal a ris­ing po­ten­tial for a more de­ci­sive shift in China’s pol­icy fo­cus away from hit­ting high growth tar­gets, but there is still un­cer­tainty over whether the drive to ad­dress risks will con­tinue to take pri­or­ity if the econ­omy slows,” Fitch said in a state­ment. – Reuters

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.