Speaking at a China Chamber of Commerce in Australia event in Sydney late Tuesday, Bank of China's Executive Vice President Sun Yu explained how increasing volatility is becoming the "new normal" for banks around the world.
"Though it is summer in Sydney, I'm sure everyone can feel the winter chill of the global economy.”
"Against the backdrop of great changes, the world's global financial institutions are facing many challenges."
"Over the past decade, central banks have continued to flood markets with liquidity, but recovery in the real economy has remained weak, leading to massive disorderly flows of money around the world."
"Cross border capital flows have become shorter-term and riskier, with short-term capital accounting for nearly 80 percent of total capital flows in the first half of this year."
"Frequent cross-border short term capital flows have led to some fluctuations in the exchange rate, interest rate, stocks and other asset prices, exacerbating financial market volatility."
"New technologies are profoundly reshaping the finance industry.”
"Big Data, and Artificial Intelligence are all being fully applied in areas such as investment consulting, intelligent marketing and risk prevention control, helping financial institutions improve their service quality and efficiency.".
The story has virtually no impact on the sentiment, which remains undermined by the rising US-China conflict over human rights and trade issue.
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