China’s financial system: opening up and system risk

China’s financial sector has grown massively in size and has
become systemically important. In addition, it has also become
much more complex with increasing systemic risk. The cyclical
-beyond the structural – deceleration that the Chinese economy is
undergoing is one of the key risks that the Chinese financial
system is facing. At the same time, China has decided to open up
its financial sector to foreign competition. What can foreign
banks expect to find? Should they grab this opportunity? Giuseppe
Pocarro is joined by independent economist Gary Liu and Bruegel
Senior Fellow, Alicia García-Herrero.