BEIJING (Reuters) – Withdrawal of high-carbon industries in China would provide a possible reassessment of invested financial resources and could pose systemic financial risks, said state-owned Shanghai Securities News , Monday, announcing a central bank official.
Authorities should closely monitor changes in macro leverage ratios and conduct more complete and accurate risk assessments and pressure tests on the financial system, said Wang Xin, head of the research bureau at People’s Bank of China, at a recent event in Shanghai.
They will also examine the establishment of dynamic risk warning mechanisms for financial institutions, which would encourage early intervention from investment-taking institutions and insurers to troubled financial institutions, Wang said.
President Xi Jinping has pledged to make the country “carbon neutral” by 2060, as part of ongoing global efforts to combat climate change. Officials have said carbon dioxide emissions should be by 2030.
Reciting with Stella Qiu, Cheng Leng and Ryan Woo; Edited by Kim Coghill