October 22, 2018 / 12:54 AM / a month ago

China banking watchdog says financial risks 'fully controllable': CSJ

The cityscape of the Beijing Central Business District, or Beijing CBD, is reflected in a pond during sunset, China October 17, 2018. REUTERS/Thomas Peter

BEIJING (Reuters) - China’s systemic financial risks are “fully controllable”, the official China Securities Journal newspaper reported on Monday, citing the head of the country’s banking and insurance regulator.

The comments, which ran on the front page of the newspaper, echoed similar points made by the regulator on Friday. They also come as Chinese leaders look to calm investor nerves over fears of slowing economic growth and a sharp sell-off in the country’s stock markets.

Separately, China’s State Council, the country’s cabinet, said on Sunday the country must balance the need for stable growth while managing financial risks following a meeting of top economic and financial policymakers.

Data released on Friday showed the world’s second largest economy growing at its weakest pace since the global financial crisis, underscoring challenges for Beijing amid an escalating trade war with the United States and sluggish domestic demand.

The China Banking and Insurance Regulatory Commission said on Friday that it had asked financial institutions to properly manage risks related to listed firms’ financing activities via stock pledging.

It added insurers would be encouraged to invest in listed firms and allowed to set up products to address liquidity issues related to listed firms’ stock pledging.

Reporting by Adam Jourdan; Editing by Sam Holmes

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