China's efforts to rigorously reform and continue opening up of its financial sector will contribute to global efforts to contain risks, said analysts.
Against the backdrop of weak recovery from the financial crisis and policy uncertainties around the globe, a series of conferences were held recently in China to soberly delve into existing risks and possible ways to fend them off.
LINGERING RISKS
Although U.S. Federal Reserve Chair Janet Yellen has recently suggested that we might not experience another financial crisis "in our lifetimes," it is still too early to declare victory.
There exists risks for the United States pursuing a clean-up of balance sheet. Efforts to shore up the banking sector in parts of Europe are still lagging behind.
Speaking of global financial risks, Bao Jianyun, a professor on world economy at the Renmin University of China, told Xinhua that "with the developed economies still on a slow-growth trend, western countries should strictly prevent their financial markets from systemic risks."
Appetite of top financial policymakers is shifting from crisis firefighting to domestic growth in some western countries. For instance, U.S. President Donald Trump's administration is proposing to roll back many of post-crisis financial regulations.
Ou Minggang, director of international finance research center at China Foreign Affairs University, said "the new president's new deregulation plan may benefit his country in short time but would add risks to international financial system."
The major risks facing Europe are the withdrawal of monetary stimulus by the European Central Bank and possible scenarios amid the Brexit.
Such uncertainties have resulted in "confidence risks," especially after protectionist moves by some countries to close their doors to overseas trade and investment, Bao warned.
CHINA'S PLEDGE FOR MORE OPENING UP
As the trend of protectionism spreads from developed countries to developing ones, Bao regarded China as the backbone of global financial stability, with its rising stature in global finance.
"China, a major emerging economy, now becomes the main push of globalization. China's financial openness and stability attach itself an indispensable role in global financial system," said Bao.
