SHANGHAI, March 30, 2018 (Newswire.com) - After President Donald Trump announced the imposition of tariffs on up to $60 billion worth of Chinese goods, Yi Gang, the People’s Bank of China’s newly appointed governor said China’s financial sectors were well prepared to deal with external threats.
China responded with its tariffs on US goods, a move which caused stock markets to plummet in Hong Kong, Shanghai, and Shenzhen last week. Hamilton Crawford reported that the Shanghai Composite Index fell 3.39 percent while the CSI 300 declined by 2.87 percent and Hong Kong’s Hang Seng Index shed 3.7 percent.
Bank Governor Yi shrugged off market reactions last week and told the China Development Forum that the nation was fully capable of handling the risk.
Yi said that as long as China is able to maintain order domestically, there will be a strong basis from which to handle external shocks and the global fallout.
While Hamilton Crawford analysts believe that Trump’s trade war with China may not be that easy to win, Yi told the China Development Forum that there were still financial risks at home that needed to be dealt with. Overall debt levels in China still run high, and some of the country’s biggest financial conglomerates are conducting business illegally without the proper licensing.
After a stock rout in 2015, China’s authorities started clamping down on the country’s privately held financial groups in a bid to limit the unprecedented departure of capital in 2016. Hamilton Crawford analysts say China has continued its widespread crackdown on tycoons in the financial sector for the past two years.
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Source: Hamilton Crawford