BIS Says China Sell Off Part of Broader Response to Imbalance

Concerns over the world’s major emerging economies, and in particular China, are growing as financial investors reassess the outlook for global growth, the Bank of International Settlements said on Sunday.

After a month of turmoil for stocks and commodities, the quarterly update from the Switzerland-based forum for major central banks avoided making predictions about whether the turbulence was likely to deepen.

Introducing the report in a briefing for journalists, Claudio Borio, head of the BIS’ monetary and economic department, said that the falls in China’s stock market should be seen as part of a broader response to increasingly stark financial imbalances.

“We are not seeing isolated tremors, but the release of pressure that has gradually accumulated over the years along major fault lines,” he said.

via Reuters

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