The People's Republic of China's Financial Policy and Regional Cooperation in the Midst of Global Headwinds

Publication | June 2013

With increased interdependence between the People's Republic of China (PRC) and Asia, if the new financial policy direction makes the PRC’s growth more stable, balanced, and sustainable, it will be good for Asia.

This paper investigates the impact of the People's Republic of China's new financial policy direction, which warrants slower but more sustainable growth. The rest of Asia needs to adjust to this new normal, and strengthen the safety nets.


  • Abstract
  • Introduction
  • The People's Republic of China's New Direction in Financial Policy
  • The People's Republic of China-Asian Interdependence and its Implications
  • Capital Flow Contagion and Returns Spillovers
  • Regional Cooperation and Market Liquidity
  • Concluding Remarks
  • References