Xi Takes Charge in Tackling Risks in China’s Finance Sector

Yo, guess what? Chinese President Xi Jinping just chaired a super important meeting to deal with the ‘risks’ in China’s finance sector. This meeting, which usually happens every five years but hasn’t taken place since 2017, gives us a sneak peek into what the Communist Party is up to. The focus of this year’s National Financial Work Conference was all about strengthening financial supervision, managing risks, and promoting finance with that Chinese flair. You see, China has been struggling to bounce back from the pandemic, with weak consumption and a housing crisis slowing down its growth. Although the economy grew by 4.9% in the third quarter, Beijing still has a tough road ahead to reach its annual target of around 5%. And to add to the mix, factory activity has declined again. But the biggest challenge right now is the troubled property sector, which has been a major driver of growth. Companies like Evergrande and Country Garden are drowning in debt, putting the whole sector at risk. At the conference, they talked about meeting the financing needs of real estate enterprises and coming up with a new model for real estate development. To boost economic activity, Beijing plans to issue one trillion yuan of sovereign bonds for infrastructure spending. So, let’s see how these measures play out and if China can overcome these hurdles!