China’s Economy Will Show Recovery in Q2
Thursday, 03 26 2020, Category: Economy, Country: China
As economies and markets around the world reel from the impact of the coronavirus pandemic, China’s central bank has sought to offer reassurance that the country’s policymakers are playing their part by stabilizing the domestic financial markets and bolstering the economy.
China’s financial markets have withstood these external shocks and are currently stable, and the central bank has plenty of policy room and monetary tools at its disposal to cope with any impact, Chen Yulu, a deputy governor of the People’s Bank of China (PBOC) said at a briefing (link in Chinese) on Sunday. He reiterated that the central bank will ensure reasonable and adequate liquidity in the banking system while also following a prudent monetary policy that will be flexible and appropriate. It will continue to provide low-interest loans to privately owned businesses and small and mid-sized enterprises which are crucial to domestic and global supply chains, he said.
“After 70 years of rapid development, China has become a major financial power in the world,” Chen said. “We have the largest credit market and foreign exchange reserves in the world, and the second largest stock market, bond market and insurance market. Therefore, maintaining the stability of China's financial market is a major contribution to global financial stability.”