China's Stable Money Policies Lack Capital Market Risks, CSRC Deputy Says
Zhou Ailin
DATE:  Sep 19 2018
/ SOURCE:  Yicai
China's Stable Money Policies Lack Capital Market Risks, CSRC Deputy Says China's Stable Money Policies Lack Capital Market Risks, CSRC Deputy Says

(Yicai Global) Sept. 19 -- China's monetary and fiscal policies are steady with no systematic risks in China's current capital market, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said yesterday.

Fang said this in the 'Stormy Markets' segment of the Tianjin Summer Davos Forum.

The biggest difference between China's market today and that of 2015 -- when the country's stocks crashed -- is that the present capital market leverage ratio is much lower with very few individual investors' fictitious transactions as compared with 2015's high ratio.

Fang is rosy about the Chinese financial industry's opening, the more so as the Shanghai-London exchange connect will start up this year, he said.

The US Federal Reserve will surely begin to raise interest rates. Recent US economic growth has been quite dynamic, while its unemployment rate is at a record low. The US has stumbled out of its latest crisis and now boasts a solid balance sheet. 

America's problem lies in unequal income distribution, rather than economic performance, since it does not evenly distribute the fruits of its growth, Fang said, in addressing the state of the global economy.

The World Economic Forum's 12th Annual Meeting of the New Champions, also known as Summer Davos, now underway in China's eastern city of Tianjin runs from Sept. 18 to 20. The northeastern port city of Dalian and Tianjin take turns as host city each year.

Editor: Ben Armour

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Keywords:   Capital Market,Monetary Policy,Market Regulator,CSRC,Summer Davos