Sino-German Financial Sector Cooperation
The Chinese financial sector is internationally still not fully integrated and was therefore only indirectly hit by the world financial crisis. Nevertheless, there is growing concern about systemic risks of the financial system and its potential negative impact for the real economy among Chinese politicians, the Central Bank, and the three supervisory authorities for banking, insurance and securities. As a member of the G-20, China intends to cooperate – as expressed by Premier Wen and Chancellor Merkel in January 2009 - , especially with Germany to cope with the effects of the global financial crisis. For China it is very important to address the potential domestic systemic risks (e.g. potential housing or equity bubbles, inadequate information of private households on the risks of credit financed investments in property, investments in equities or the purchase of insurance products) and to ensure the stability and transparency of its financial sector. Financial sector instabilities in China would also have negative effects on the world economy and the stability of the global financial system.