China’s Economy On The Road To Recovery Says Zhou
According to the head of the Chinese central bank, Governor Zhou Xiaochuan, the national finanacial crisis is beginning a smooth recovery he announced during the G20 Finance Ministers and Central Bank Governors Meeting in Turkey
The Shanghai Composite Index tumbled 39% since reaching a seven-year high on June 12, helping to erase $5 trillion in value on mainland bourses, as traders cut leveraged bets.
The two-day meeting, in Ankara, Turkey, saw G20 finance ministers and central bank governors pledge to take decisive action to keep economic recovery on track.
The Chinese government intervened in the equity market prevented systemic risk and stopped the free-fall in shares, People’s Bank of China Governor Zhou Xiaochuan said in a statement on the bank’s website Saturday
“We think it’s pretty close to the end,” Zhu said, referring to the stock-market volatility. “To some extent the leverage in the market has been decreased substantially and we think there would be no systemic risk.”