China News Service, March 2nd, regarding concerns that capital inflows and asset bubbles may lead to imported inflation.
Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, responded on the 2nd that China's economy is still recovering growth, asset prices are very attractive, and foreign capital inflows are inevitable.
But so far, the scale and speed are still under control.
On the 2nd, the State Council Information Office held a press conference on promoting the high-quality development of the banking and insurance industry.
A reporter asked: Compared with the major western economies, China has taken the lead in normalizing its policies, especially monetary policy. What impact will the differences in the pace of policies between China and foreign countries have on China's policies and the market?
Recently, there are some concerns that capital inflows and asset bubbles may lead to imported inflation. Do you think these concerns are justified?
In this regard, Guo Shuqing said that since the outbreak of the new crown epidemic, the global economy has experienced relatively large fluctuations, and the overall decline has been.
The Chinese economy suffered a setback last year. A relatively large decline occurred in the first and second quarters, and gradually returned to normal in the third and fourth quarters. The annual economic growth rate dropped significantly compared with previous years.
Guo Shuqing said that developed countries in Europe and the United States, countries with severe epidemics, and some developing countries have adopted proactive fiscal policies and extremely loose monetary policies.
However, there may be more considerations in terms of strength and consequences. After all, there will be some side effects, which are now gradually appearing.
One is the financial market. The financial markets of developed countries in Europe and the United States are operating at a high level, which is in serious contradiction to the real economy.
Guo Shuqing said, “The financial market should reflect the state of the real economy. If it is too different from the real economy, problems will arise, and sooner or later it will be forced to adjust. Therefore, we are very worried that the financial market, especially foreign financial asset bubbles, will burst.”
Second, after the increase in liquidity, due to the highly globalized economy, China's economy is closely connected with the economies of other countries, and the amount of foreign capital flowing into China will increase significantly.
China's economy is still recovering growth, asset prices are very attractive, and the spreads are relatively large compared with other countries, and the inflow of foreign capital is inevitable.
Guo Shuqing said, "But so far, the scale and speed are still within our control. We are also continuing to study how to adopt more effective measures. On the one hand, we encourage the cross-border flow of capital elements and become more and more open. On the other hand, On the one hand, we must not cause too much fluctuation in the domestic financial market. We are confident that we will do a good job in this work."