BEIJING (Reuters) – China’s top banking and insurance regulator expressed wariness of the risk of bubbles bursting in foreign markets, and said China is studying effective measures to manage capital inflows to prevent turbulence in the domestic market.
Global markets are starting to see side effects of fiscal and monetary policy steps in response to the COVID-19 pandemic, said Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, at a news conference on Tuesday.
“Financial markets are trading at high levels in Europe, the U.S. and other developed countries, which runs counter to the real economy,” Guo added.
As the economy has become highly globalised, foreign capital flowing into China will increase significantly due to economic recovery and attractive asset prices, said Guo, and China is studying plans to manage the inflows to prevent turbulence in the domestic market.
(Reporting by Tina Qiao, Cheng Leng and Ryan Woo in Beiing; Se Young Lee in Washington; Editing by Christopher Cushing)
