China central bank: Financial system is stable

Added On November 5, 2018

According to a report released by China's central bank, China's economic and financial risks remain generally under control.
The report was released by the People's Bank of China (PBOC) on Friday, and said China’s financial system showed resilience and stability amid mounting external uncertainties, as the country moved to resolve systemic risks.
It said the macro-economic and financial policies will be more forward-looking, flexible and coordinated in 2019, and the country will continue to push forward with financial reform and opening up.
The report warned of financial risks associated with local government debts, real estate loans and shadow banking.
It also said financial risks related to "grey rhino" events may surface.
However, it noted that as the country remained committed to preventing and defusing major risks, structural and institutional risks will be well contained and resolved.
According to the PBOC, the country is expected to unveil regulation rules on financial holding groups in the first half of 2019.
The central bank also released its first financial institutions ratings in Friday's report, covering 4,327 financial institutions.
The ratings divided the institutions into 10 classes, with 10 representing the riskiest.
Around 10 percent of the financial institutions saw their rankings over eight, meaning stricter restrictions will be applied in terms of financial policy support, business access and reloan extension.