China’s Securities Regulatory Commission Eases Concerns at World Economic Forum

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China’s Securities Regulatory Commission (CSRC) discussed the country’s ability to ward off a slowing economy at the World Economic Forum on Thursday. Vice Chairman of the CSRC, Fang Xinghai, stated the country cannot afford to let the growth rate decline too sharply because it will cause severe financial issues in China.

Mr. Fang also stated that the country has the means to assist on the fiscal side, and will implement measures to increase growth in the country. China’s economic growth slowed to 6.8% in Q4 2015, reaching its slowest level since the financial crisis hit. The country is struggling to gain the confidence of investors, and many policy insiders expect the country to increase its budget deficit to about 3% of its GDP.

Further industry cuts and bank reserve ratios are anticipated in the coming months, and Mr. Fang also stated that the stock market should help to support the economy more. No further details were divulged on how the stock market could help support the economy.

Based on current economic fundamentals, there is no reason that China will devalue the yuan, according to Mr. Fang.

China will need a structural reform that will require a massive undertaking, according to Christine Lagarde, International Monetary Fund chief.

Jacob Maslow is a native New Yorker with  five children. He left his payroll manager position after finding that his true passion was in writing, and has never looked back.

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