China News Service, Beijing, March 2 (Liu Liang) In response to concerns about capital inflows and asset bubbles that 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 currently recovering, and asset prices are still growing. Very attractive, the inflow of foreign capital is inevitable.
But so far, the scale and speed are still within the controllable range.
He said that since the outbreak of the new crown pneumonia, the global economy has undergone major fluctuations, and the overall trend is downward.
Although China's economy has gradually returned to a normal state since the third quarter of last year, the annual economic growth rate has dropped significantly compared with previous years.
He said that developed countries in Europe and the United States, countries with severe epidemics, and some developing countries have all adopted proactive fiscal policies and extremely loose monetary policies.
However, more consideration may be needed in terms of intensity and consequences. After all, these measures will also produce some side effects, and now these side effects have gradually emerged.
The first is the financial market. The financial markets of developed countries in Europe and the United States are operating at a high level, which is a serious departure from the real economy.
He 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 growing at a recovery rate. Asset prices are very attractive. Compared with other countries, the spread of interest is relatively large. The inflow of foreign capital is inevitable."
"At present, the scale and speed of (capital inflows) are within a controllable range. We are also continuing to study how to adopt more effective measures. On the one hand, we encourage cross-border flows of capital elements and become more open. On the other hand, we have It cannot cause too much volatility in the domestic financial market. We are confident to do a good job in this work," he said.
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