Economic growth and financial risk go hand in hand

As economic activity stabilized in most sectors, in the third quarter we have detected indicators that could signal the future sources of risk for the Chinese economy. Consumer and producer prices continue the same trends shown in recent months. On the other hand, prices in the real estate sector show a slowdown and even a decrease. The balance sheets of the Central Bank of China continue to expand at a good pace. Furthermore, the appreciation of the yuan has helped moderate capital outflows from China. Should it continue this way, it could reach a neutral point and could return to the path of stability in the financial system. In this report we corrected errors in certain indicators and introduced a new one that indicates Chinese financial stability: loans under stress over total reserves available to the country.