EU Tour – Meeting with Deputy Director-General Sean Berrigan
2016-01-27 | Beijing
The DDG informed the delegates about his visit to Beijing last December. China is very confident with their own system as they have scale. During the visit the Chinese officials were very interested in learning more about the capital markets union as they want to open the capital markets to SMEs.
Discussion on the balance between reforms and the need for stability. Reforms mean introduction of volatility and the leadership does not like this. The DDG mentioned that during his meeting in Beijing, the officials he met, although confirmed they are not happy with the market conditions, understand that the markets should have a disciplinary role.
It was mentioned that there is still confidence and then a discussion on what could be the reactions if this confidence disappeared.
Discussion on the reaction of international market to the China’s situation due to a lack of a clear picture of what is happening (policy mistakes and inability/lack of communication). Main concern domestically and internationally is managing expectations and for the leadership is political instability.
Discussion on media control, rule of law, anti-corruption campaign.
The DDG suggested to the delegates to prepare a list of things to watch out due to potential risks.