Caixin
Jan 23, 2018 10:32 PM
FINANCE

Beijing Has Tools to Prevent Systemic Collapse, Regulator Says

If there were a crisis in China, “we will move very swiftly to contain that risk to make sure that whatever panic is caused by this small institution does not spread into the entire system quickly,” said Fang Xinghai, vice chairman of the China Securities Regulatory Commission.
If there were a crisis in China, “we will move very swiftly to contain that risk to make sure that whatever panic is caused by this small institution does not spread into the entire system quickly,” said Fang Xinghai, vice chairman of the China Securities Regulatory Commission.

(Davos, Switzerland) – China has the necessary tools to prevent the collapse of a smaller financial institution from spreading through its financial system, although a rapidly moving crisis could still prove overwhelming, a top financial regulator said on Tuesday.

“I can tell you, in the Chinese system if something happens to certain small financial institutions, what we will do – and this is a lesson we learned from the U.S. financial crisis – is that we will move very swiftly to contain that risk to make sure that whatever panic is caused by this small institution does not spread into the entire system quickly,” said Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), the nation’s stock market regulator.

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