China is stepping up its defense against geopolitical threats.
The Chinese intelligence service has expressed its intention to actively participate in protecting the country's financial stability and closely monitor risks in this area. China's Ministry of State Security expressed concern on its official WeChat channel about attempts by some countries to "cause disruptions" in China's financial system.
The announcement comes after Chinese President Xi Jinping said at a financial conference that preventing and resolving financial risks is an "eternal theme" for the government and promised to strengthen oversight in all areas. His words underscore Beijing's concerns about the fragility of the financial system amid geopolitical turmoil, as well as real estate problems and rising local government debt.
The ministry also accused "some countries" of using the global financial market to undermine China, which is a hidden jab at the United States. The report says that "some countries view the financial market as a tool for geopolitical games, manipulating their monetary hegemony and using financial sanctions as a club against others."
In this regard, according to the agency, Chinese state security agencies should "actively participate in the creation of national security systems in the economic, financial and other areas," as well as carefully monitor and effectively prevent national security risks in the financial sector and deal with violations in this area.
Growing concerns about financial stability and growth prospects in the world's second-largest economy are linked to a prolonged downturn in the real estate market, capital outflows and slowing exports. Given the high interest rates in the US, foreign investors are withdrawing capital from Chinese stock exchanges, which leads to a drop in stock prices, and the yuan's exchange rate against the US dollar has fallen to a 16-year low.
In September, $ 75 billion worth of capital was withdrawn from the country, the largest net outflow since 2016, according to a Goldman Sachs report.
Xi Jinping stressed that the prevention and resolution of financial risks is an "eternal theme" for the government.
Xi Maosong, a senior researcher at the National Strategy Institute at Tsinghua University, noted that Beijing seems to suspect that some of the capital outflows and short sales may be politically motivated, based on findings from an investigation into the 2015 stock market crash.
Xi noted that the Ministry of State Security intervenes only in cases where foreign collusion is detected, as its main role is to counter foreign intelligence and subversive activities.
The Chinese intelligence service has expressed its intention to actively participate in protecting the country's financial stability and closely monitor risks in this area. China's Ministry of State Security expressed concern on its official WeChat channel about attempts by some countries to "cause disruptions" in China's financial system.
The announcement comes after Chinese President Xi Jinping said at a financial conference that preventing and resolving financial risks is an "eternal theme" for the government and promised to strengthen oversight in all areas. His words underscore Beijing's concerns about the fragility of the financial system amid geopolitical turmoil, as well as real estate problems and rising local government debt.
The ministry also accused "some countries" of using the global financial market to undermine China, which is a hidden jab at the United States. The report says that "some countries view the financial market as a tool for geopolitical games, manipulating their monetary hegemony and using financial sanctions as a club against others."
In this regard, according to the agency, Chinese state security agencies should "actively participate in the creation of national security systems in the economic, financial and other areas," as well as carefully monitor and effectively prevent national security risks in the financial sector and deal with violations in this area.
Growing concerns about financial stability and growth prospects in the world's second-largest economy are linked to a prolonged downturn in the real estate market, capital outflows and slowing exports. Given the high interest rates in the US, foreign investors are withdrawing capital from Chinese stock exchanges, which leads to a drop in stock prices, and the yuan's exchange rate against the US dollar has fallen to a 16-year low.
In September, $ 75 billion worth of capital was withdrawn from the country, the largest net outflow since 2016, according to a Goldman Sachs report.
Xi Jinping stressed that the prevention and resolution of financial risks is an "eternal theme" for the government.
Xi Maosong, a senior researcher at the National Strategy Institute at Tsinghua University, noted that Beijing seems to suspect that some of the capital outflows and short sales may be politically motivated, based on findings from an investigation into the 2015 stock market crash.
Xi noted that the Ministry of State Security intervenes only in cases where foreign collusion is detected, as its main role is to counter foreign intelligence and subversive activities.
