China’s banking regulator, Guo Shinqing, warned that the rallies on Wall St. and other markets are not rallies but financial bubbles.
“Financial markets are trading at high levels in Europe, the U.S. and other developed countries, which runs counter to the real economy,” Guo Shuqing, head of the China Banking and Insurance Regulatory Commission (CBIRC), said in comments at a news conference, according to Reuters, Bloomberg, and other media outlets.
Pointing to the role of central banks in these bubbles, Guo warned that corrections may come “sooner or later.” He also said his agency will take measures to control unwanted inflows of capital, warning about “dangerous” property speculation in China.
