Real economy shielded from systemic risks

Financial systemic risks were stimulated in the first half of this year due to Sino-US trade friction, as well as the overlapping effect of domestic financial deleveraging in a tightened regulatory environment, but the real economic sectors have been isolated from the risk, said research published on Thursday.

The index, monitoring 202 listed companies in the financial and property sectors, is calculated by researchers to indicate financial systemic risk under some extreme scenarios.

It jumped sharply this year, especially since March when Sino-US trade tensions emerged and Chinese financial regulators issued new regulations to curb shadow banking financing activities, said Zhou Hao, a professor at Tsinghua University's PBC School of Finance.