The sub-prime loan crisis has in fact had a limited impact on the Chinese economy, Zheng Jingping, spokesman of the National Bureau of Statistics (NBS), said yesterday, the Securities Daily reported today.
This is the first time a governmental official has responded to the crisis' impact on the Chinese economy.
With a similar view, market insiders said the crisis will not significantly impact China's A-share market, despite worries after the Shanghai Composite Index ended 2.28 percent lower at 4,656 points on August 17.
Stock markets have plunged in the United States, Europe, Japan, South Korea, and China's Hong Kong Special Administrative Region.
Analysts also say investors fear the US sub-prime loan crisis could trigger a slowdown in the US economy.
Experts said the domestic financial system suffered less from the crisis due to its sound control and supervision system.
Some domestic banks, including the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and China Merchants Bank, have defended their slight involvement or noninvolvement in the crisis.
Major stocks rebounded after the Federal Reserve cut the discount rate it charges on direct loans to banks on August 17. The Dow Jones Industrial Average was up 1.2 percent and Britain's leading FTSE-100 index was up 3.5 percent last Friday.
Stocks in France and Germany also increased by more then 1.5 percent last Friday.
(China Daily August 20, 2007)
