Beijing Could Intervene to Stabilize Markets as China’s Financial Risk Increases

A Chinese migrant worker passes by the People's Bank of China in Beijing on May 1, 2013. Mark Ralston/AFP

China’s economy is shrinking and financial risks increasing under the impact of “zero-COVID” policies and regional lockdowns across the country.

On March 25 the China Banking and Insurance Regulatory Commission (CBIRC) established the country’s first financial stability fund. Supplied by China’s banks and other institutions, the fund is intended to help shield the country from financial risks.