China central bank chief supports closer IMF surveillance of fiscal, spillover risks
TLT•People's Bank of China Governor Pan Gongsheng said Beijing supports stronger IMF surveillance of fiscal risks in major advanced economies and their spillover effects. He also urged the IMF to focus more on global imbalances and the effects of capital flows.
1. Pan urges broader scrutiny
Pan made the remarks at an International Monetary and Financial Committee meeting during the IMF and World Bank annual gatherings in Bangkok. He called for the IMF to analyse global imbalances and give greater emphasis to financial factors such as capital flows. Pan also said China supports the multilateral trading system and opposes protectionist measures.
2. Global bond market context
The article cited surging borrowing costs, chronic high fiscal deficits in major economies and turbulent investor sentiment as factors behind a widespread global bond market rout. It said massive capital expenditures in artificial intelligence had aggravated investor sentiment.
