As the Chinese stock market tumbles, University of Warwick economist Dr Dennis Novy, who has just returned from the country, said:
"The Chinese government is deeply worried about a sharp drop in the stock market. Such a drop hits both the balance sheets of state-owned enterprises as well as the pockets of small-scale private investors. All this is happening against the backdrop of a slowing Chinese economy. Therefore, the government has been pumping a lot of financial firepower into the system to prop up markets.
“At the same time, it banned selling for some investors. Not surprisingly, this ban has rattled investors, further undermining confidence in the market. All this drama unfolds at a time when China is trying to open up its financial markets to international investors and turn the renminbi into an international currency. But there is a serious tension between control and openness.”
Notes to Editors:
Dr Dennis Novy is based in central London and is available for interviews. Contact Lee Page, Communications Manager, Press and Policy Office, The University of Warwick. Tel: +44 (0)2476 574 255, Mob: +44 (0)7920 531 221. Email: email@example.com.
Watch one of Dr Novy's previous TV interviews with Sky News: