China’s economy is shrinking and financial risks increasing under the impact of “zero-COVID” policies and regional lockdowns across the country.
On March 25 the China Banking and Insurance Regulatory Commission (CBIRC) established the country’s first financial stability fund. Supplied by China’s banks and other institutions, the fund is intended to help shield the country from financial risks.
China’s State Council asked the People’s Bank of China and other institutions to establish the fund no later than the end of September. To meet this deadline, the People’s Bank issued the Financial Stability Law (Draft for Comments) on April 6, claiming this was necessary since the resolution of financial risks had become “an eternal theme.”…