🇨🇳🇹🇭 Pan warns on AI financial risks

People’s Bank of China Governor Pan Gongsheng warned at the G20 finance ministers and central bank governors meeting in Bangkok on Oct. 15 that volatility in some sovereign bond markets and rising correction risks in AI-related asset valuations are increasing financial fragility. He also reiterated that global imbalances should not be addressed through exchange-rate adjustment.

Pan said global imbalances require a broader framework beyond current accounts, with greater focus on financial channels and capital flows as global financial integration deepens. He said exchange rates are shaped by growth, monetary policy, financial markets, geopolitics, and sudden risk events, and do not have a simple linear relationship with current-account positions.

Pan also said the PBOC will continue an appropriately accommodative monetary policy to support stable growth and smooth financial market conditions. China’s finance minister Lan Fo’an separately called for comprehensive, objective, and balanced G20 discussions on major international economic and financial issues.

#China #Thailand

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