By Abraham Olatunbosun
China is planning to come out with a strategy to combat the growing impact of COVID-19 and Russia/Ukraine war on global economy.
Beijing, the capital of China is presently hosting the Financial Street Forum, where 27 activities on 39 topics are being held, with four parallel forums, namely real economy and financial services, global market and financial development, digital economy and financial technology, and governance system and financial stability.
The forum was first held in 2012 and upgraded as a state-level and international industry forum in 2020. A decade later, it has been referred to as the guidepost for China’s financial reform.
Beijing Financial Street, dubbed “China’s Wall Street” and the “brain” of China’s finance, which was officially formed in 1993, celebrates its 30th year anniversary this year.
The annual Financial Street Forum, which is holding from Monday to Wednesday in Beijing with the focus on economic development and financial cooperation amid unprecedented changes, is expected to proffer solution to the global economy that is experiencing a number of changes, including significant economic growth slowdown in a growing share of economies, high inflation unseen in several decades, tightening financial conditions in most regions and the lingering COVID-19 pandemic.
Recent reports show that the global GDP growth is forecast to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023 – the weakest growth outlook since 2001 except for the global financial crisis and the acute phase of the COVID-19 pandemic – according to the International Monetary Fund (IMF).
Also, a third of the world economy faces two consecutive quarters of negative growth. The GDP of the United States contrasted in the first half of 2022, while the euro zone contrasted in the second half, said the IMF.
Global inflation is forecast to rise from 4.7 percent in 2021 to 8.8 percent in 2022 before dropping to 6.5 percent in 2023, according to the IMF. Upside inflation surprises have been most widespread among advanced economies, with greater variability in emerging markets and developing economies.
High inflation has prompted rapid monetary policy tightening as fiscal support related to COVID-19 pandemic wanes.
Beijing Financial Street (BFS) hosts Chinese financial and monetary authorities and over 1,900 financial institutions. It is also home to the headquarters of 175 large financial institutions, 16 of which are on the Fortune Global 500 list, as well as 143 foreign financial institutions.
Assets of financial institutions on the BFS have reached 133.6 trillion yuan ($18.8 trillion), while assets of listed companies on the BFS are valued at over 143 trillion yuan ($20.1 trillion) this year, according to data from the BFS.
About 41 percent of the national assets of commercial banks are on the BFS, which also hosts 90 percent of national credit funds and 65 percent of insurance premium funds.