The People’s Bank of China: Financial risks in some areas may be exposed faster.
First, liquidity tightening has exacerbated the adjustment of the financial market, leading to sharp fluctuations in asset prices, increasing pressure on non-bank financial institutions such as pension funds, insurance companies, and hedge funds, and some market players with poor financial conditions are facing shocks.
Second, the Federal Reserve’s interest rate hike has accelerated the return of safe-haven funds to the United States, and the pressure of capital outflow from other countries, especially developing economies, has increased.
Third, the strong US dollar is superimposed with the pressure of deteriorating domestic economic prospects, and the solvency of some emerging market economies with heavy US dollar debt burdens is facing a test.
