China predicts financial turmoil throughout 2008

by Richard Kilner

Story link: China predicts financial turmoil throughout 2008

China’s central bank yesterday forecast that the global financial turmoil is set to continue throughout the course of the year, with oil and gold prices remaining high.

The People’s Bank of China also stated that overseas financial institutions will be encouraged to play a fuller role on the Chinese financial services scene.

The reasoning behind the prediction of the continuing nature of the financial turbulence is not just the US subprime mortgage crisis and ensuing credit crunch, but also international terrorism, according to the central bank.

The report also stated that the US dollar could recover by the year’s end.

China’s central bank also advised the nation to consider the possibility of permitting foreign financial institutions to list on its stock exchange