Arab Today, arab today china\s financial worries not to induce crisis
Last Updated : GMT 13:22:57
Arab Today, arab today
Arab Today, arab today

China\'s financial worries not to induce crisis

Arab Today, arab today

Arab Today, arab today China\'s financial worries not to induce crisis

Beijing - XINHUA

Among those mongering gloom on China\'s economic outlook, some say that financial worries including shadow banking and local government debts are likely to bring down the world\'s second largest economy.But facts have proven that this is not likely to happen.Over the years, an increasing number of people making little gain on bank deposits have shifted to risky alternatives such as various \"wealth management products,\" which gives rise to shadow banking.It is true that the rise of the shadow-banking sector is an annoying sign for the economy because this kind of non-banking finance could create bank-type risks outside the constraints of bank regulations.However, the market might have been over-anxious by estimating that the financial worries might trigger a full-blown crisis in China, whose growth slid to 7.5 percent in the April-June period, a rate much lower than the two-digit growth recorded in the past decades.The argument, first of all, is proven by recent improvements. In an obvious sign of decline, the shadow-banking sector\'s share of banking assets was reduced to only 13 percent in July, compared with the much higher 54 percent in the first quarter of this year.The improvement is partly attributed to efforts made by the Chinese authorities to strictly regulate most trust and wealth management products and control the risks of shadow banking.In a fresh effort to beef up financial supervision, the Chinese authorities have decided to coordinate financial supervision by approving a mechanism, headed by the People\'s Bank of China and involving regulatory bodies from the banking, securities, insurance and foreign exchange sectors.Another factor that contributes to the shrinking of the shadow-banking sector is the decline of the Chinese enterprises\' demand for high-rate loans.Moreover, to reform its financial sector, Beijing has taken a package of steps to liberalize the financial market, among which, China\'s central bank announced on June 19 to lift controls on bank lending rates, as its governor Zhou Xiaochuan has indicated the bank is ready to free long-awaited deposit interest rates.The moves, a clear signal of the government\'s determination to push forward market-oriented reforms, are likely to result in competition between banks, which would lead the better ones to healthy margins and help them win back market share from shadow banking.Despite the slowdown, Beijing has refrained from initiating a massive stimulus program to lift the economy and allow leeway to proceed with structural reforms for the long-term good.The ongoing Group of 20 summit came just in time to provide China a good platform to expound its blueprint to bolster the world\'s confidence in its economy, which is important not only to China, but also to the world at large.Pain is unavoidable as China breaks away from the old growth model, but the Chinese economy has not broken the bottom line.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china\s financial worries not to induce crisis Arab Today, arab today china\s financial worries not to induce crisis

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china\s financial worries not to induce crisis Arab Today, arab today china\s financial worries not to induce crisis

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday