PBoC: Trade protectionism has had negative impact on China's economy

Trade frictions initiated by the US is bringing negative impact on China, the global economy and financial markets, revealed PBoC's (the People's Bank of China) financial stability report for 2018, released this Friday.

Key highlights:

   •  Structural contradictions in China’s economic operations are still obvious.
   •  Financial system faces more external uncertainties.
   •  Resolving potential risks for China still an arduous task.
   •  Pre-emptive and flexibility of China’s financial policies will further improve in 2019.
   •  Stability of China’s macroeconomic and financial system will improve.
   •  Grey Rhino type financial risks may still surface in 2019.
   •  Systemic risks will not occur in China; economic and financial risks are controllable.
   •  Will push forward market-based interest rate reforms.
   •  Will push forward Yuan exchange rate reform.
   •  Will maintain prudent monetary policy neutral.