Mechanisms of the Impact of COVID-19 on Financial Risk and Governance Responses in China Based on Big Data

DOI

10.2991/978-94-6463-198-2_46How to use a DOI?

Keywords

COVID-19 outbreak; financial risk; governance response; financial markets

Abstract

COVID-19 has a serious impact on China’s economy and China’s financial system. In order to clarify the impact of COVID-19 on China’s financial risk, this paper first analyzes the impact mechanism of COVID-19 on China’s financial system, and then combines statistical analysis of key indicator data to provide an in-depth analysis of it, financial institutions and financial markets from three aspects, including money flow, lending credit and investment sentiment. It is found that: the liquidity of the financial system will be tight in the short term due to the impact of COVID-19, the cost of foreign aid of commercial banks and the further deterioration of credit quality make bank profits drop significantly, bank fundamentals will suffer a short-lived shock, and market expectations and investor sentiment will also tend to be conservative due to COVID-19. On this basis, this paper puts forward relevant recommendations on the prevention of financial risks during COVID-19, namely, increasing fiscal support, implementing proactive fiscal policy and appropriately flexible monetary policy; strengthening policy synergy, mastering the direction and strength of macro policy regulation; doing a good job of COVID-19 prevention and control, reshaping confidence and expectations in economic and financial development; strengthening international financial cooperation, and building a community of human destiny, with a view to helping “hold the bottom line of no systemic risk”.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Qi Li
PY  - 2023
DA  - 2023/08/10
TI  - Mechanisms of the Impact of COVID-19 on Financial Risk and Governance Responses in China Based on Big Data
BT  - Proceedings of the 2nd International Academic Conference on Blockchain, Information Technology and Smart Finance (ICBIS 2023)
PB  - Atlantis Press
SP  - 449
EP  - 457
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-198-2_46
DO  - 10.2991/978-94-6463-198-2_46
ID  - Li2023
ER  -