Former Chinese official says China needs to brace itself in the midst of a “financial war” and, as expected, interest rate cuts by the US Federal Reserve will draw huge amounts of money back to China, sparking new turmoil in China’s situation I warned you that this is a possibility. Domestic financial market.
Chen Wenlin, chief economist at the China Center for International Economic Exchanges, said: “Prevent large-scale malicious speculation to steal China’s prime assets and prevent[US capital injections]from causing problems for China’s stock market. I have to do it.” A government think tank based in .
Chen, who worked as a senior official at the State Council Investigation Office from 1999 to 2010, made the comments in an interview with news portal Guancha.cn this week.
The warning comes as geopolitical tensions between the United States and China extend beyond trade, and as Chinese authorities struggle to rebuild a stock market ravaged by massive outflows of foreign capital.
Nevertheless, interest rate trends are likely to draw foreign investors back to China, and Chen expects the world’s second-largest economy to be boosted by more active capital markets this year.
