The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

China: Banks play down financial risks

Senior bankers in China remain confident that the economy will continue to provide a favourable backdrop for the banking industry, despite a slowdown in growth. However, some concede that a more complex economic environment in China and abroad will bring greater challenges to the banking system, especially in risk management.

Qian Wenhui, executive director and executive vice-president at Bank of Communications, says: "China is [likely] to face a slowdown to a certain degree," although he still estimates that "this year’s GDP will retain a growth rate of 10% or so, maintaining the momentum of the rapid development of recent years".

Qian’s comments come as stories emerge in the local press that the government is planning a stimulus package of Rmb370 billion ($54 billion) through a mixture of state spending and tax cuts amid fears, according to Michael Pettis, a former Bear Stearns trader and now an academic in Beijing, that the economy might be weakening, as opposed to growth merely slowing.

Negative impact

Even some of China’s most senior officials accept that the outlook for the economy is poor. "Negative impact on the economy will continue," said Zhu Zhixin, vice-minister of the National Development and Reform Commission, in a press conference last month.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree