Global EditionASIA 中文雙語Fran?ais
    Business
    Home / Business / Finance

    New fund to strengthen financial safety net, smooth market slumps

    By ZHOU LANXU | China Daily | Updated: 2022-09-28 09:04
    Share
    Share - WeChat
    SHI YU/CHINA DAILY

    China's national financial stability fund has accumulated a certain amount of capital with its initial framework established, marking a critical step for the country to strengthen its financial safety net against rising global financial fragility, experts said on Tuesday.

    "At present, the fund for ensuring financial stability has established a basic framework in a preliminary manner and has accumulated a certain amount of capital," the People's Bank of China, the country's central bank, said in an article released on Monday.

    Financed by market players, including financial institutions and financial infrastructure operators, the fund is aimed at accumulating the capital needed by the central government to deal with major financial risks and will be used when other sources of capital face shortfalls in handling said risks, the PBOC said.

    In other words, financial institutions, as well as their shareholders and actual controllers, local governments, deposit insurance funds and relevant industry funds, should fully use their resources to resolve significant financial risks in line with their responsibilities and according to the law. If there is still a funding gap, the national financial stability fund will be used upon approval, the central bank said.

    China's draft law on financial stability, released in April, proposed the establishment of a national fund as spare capital to handle major financial risks and allows the PBOC to provide liquidity support for the fund if necessary. The fund had raised 64.6 billion yuan ($9.02 billion) as of May, said the China Banking and Insurance Regulatory Commission.

    China's efforts to set up the fund are in line with international practices to fend off financial crises, experts said, adding that the fund is expected to be used only to defuse significant financial risks, instead of ironing out normal market fluctuations.

    Huang Wentao, chief economist at China Securities, said his team expects the national financial stability fund to collect about 120 billion yuan to 180 billion yuan annually, so as to obtain sufficient capital to handle significant potential financial risks.

    Taking similar funds in developed economies as a reference, Huang said it is possible for China's national financial stability fund to consider setting a cap on its funding and developing an information-sharing mechanism for risk monitoring and early warning purposes.

    Dong Dengxin, director of the Wuhan University of Science and Technology's Finance and Securities Institute, said the fund can help stem the spread of risks in the initial stage of any possible financial crisis by smoothing market fluctuations and bailing out struggling financial institutions.

    The central bank article added that the country's financial risks have been mitigated and are at a controllable level, with 98.9 percent of banking industry assets considered safe by the PBOC's evaluation system as of the end of 2021, indicating the robustness of financial institution operation.

    Risks regarding shadow banking have decreased, the article said, as 87 percent of the country's asset management products have become net worth products that do not guarantee investors a specific return as of the end of June, up by 41 percentage points from the end of 2018.

    The PBOC will further strengthen the regulatory basis for financial stability, defuse risks among key enterprise groups and financial institutions, and deepen financial institution reforms to improve corporate governance, the article said.

    Top
    BACK TO THE TOP
    English
    Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
    License for publishing multimedia online 0108263

    Registration Number: 130349
    FOLLOW US
    CLOSE
     
    亚洲日韩精品无码一区二区三区 | 乱人伦人妻中文字幕无码| 色综合久久最新中文字幕| 国产成人无码一区二区三区| 影音先锋中文无码一区| 亚洲精品中文字幕无码蜜桃| 波多野结衣AV无码| 亚洲精品无码不卡在线播放HE| 日本久久久精品中文字幕| 性无码专区| 国产50部艳色禁片无码| 亚洲AV无码一区二区三区系列| 中文字幕一区二区三区在线不卡| 中文字幕AV中文字无码亚| 亚洲av无码成人精品区在线播放| 人妻系列无码专区无码中出| av无码人妻一区二区三区牛牛| 欧美日韩中文字幕| 日韩乱码人妻无码中文字幕久久| 内射无码专区久久亚洲| 久久无码av三级| 丰满少妇人妻无码| 国产精品无码久久综合| 蜜桃臀无码内射一区二区三区| 亚洲AV永久无码精品成人| 亚洲Av综合色区无码专区桃色| 国产亚洲精久久久久久无码77777 国产又爽又黄无码无遮挡在线观看 | 中文字幕精品一区二区精品| 天天看高清无码一区二区三区| 波多野结衣AV无码| 久久亚洲av无码精品浪潮 | 中文字幕精品无码一区二区| 国产仑乱无码内谢| 日韩电影无码A不卡| 国产亚洲美日韩AV中文字幕无码成人| 黄A无码片内射无码视频| 久久精品aⅴ无码中文字字幕重口 久久精品国产亚洲AV无码娇色 | 久久久久亚洲av无码专区喷水 | 免费A级毛片无码视频| 国产午夜无码视频在线观看| 国产办公室秘书无码精品99 |