HTTP/2 200 date: Fri, 07 Dec 2018 16:00:04 GMT content-type: text/html; charset=utf-8 set-cookie: __cfduid=df21796677593234aa78406138e4075701544198404; expires=Sat, 07-Dec-19 16:00:04 GMT; path=/;; HttpOnly; Secure cf-cache-status: HIT cache-control: public,max-age=15 access-control-allow-origin: * cf-ray: 485833fd5bcd3f83-YUL etag: W/"28cb2-F3ITbN1jM/myKnLUxQ3Rq5gkybE" expect-ct: max-age=604800, report-uri="" link: ; rel=preload; as=script; link: ?path=%2Fglobal-economics%2Fchina-needs-bailout-capital-plans-for-crisis-event-pboc-s-ma>; rel=preload; as=fetch; vary: Accept-Encoding x-powered-by: Express server: cloudflare China Needs Bailout, Capital Plans for Crisis Event: PBOC's Ma


(Bloomberg) -- People’s Bank of China adviser Ma Jun has probed the economy for triggers of financial turbulence, and proposed measures including direct bailouts of enterprises and bank re-capitalization should a crisis hit.

Property bubbles, local government contingent debt, the heavy reliance on land sales for financing or the shadow banking sector could set off a major crisis in China, according to Ma’s article[1] published on the Wechat account of PBOC-affiliated magazine China Finance.

He said actions should be taken in advance to prevent risks from materializing, including:


  • “Full attention” to smaller banks, such as joint-stock, city and rural lenders, as their role in generating systemic risks may “very likely exceed expectations”
  • Revision to the central bank law to enhance the PBOC’s ability to make decisions more independently and giving forward guidance
  • Allowing more types of financial institutions other than commercial banks to be able to participate in bond trading to improve the liquidity of the market
Invention ranging from direct

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