HONG KONG: Experts speaking at the economics sessions of the 2009 Boao Youth Forum in Hong Kong said yesterday that the recent financial crisis may have wreaked havoc on the global economy, but China managed to gain a lot of positives from the crisis.

Many panel speakers believed China gained a higher reputation and stronger influence in the international arena due to its active role in helping the regional economy shake off the crisis.

"China's influence in the international political and economic arena has greatly strengthened after the global financial crisis," Lau Siu-kai, chief policy adviser of the Hong Kong government, declared at the discussion.

"The country's international status has also risen significantly," Lau said.

He attributed this achievement, to the country's efforts in helping economies in the region fight off the crisis, such as maintaining a stable currency, providing financial assistance and entering into various financial swap agreements.

Min Liao, a high-ranking official from China's banking regulator, the China Banking Regulatory Commission (CBRC), echoing Lau's view, said, "After the crisis, China has more chances to participate in international affairs and wields stronger influence."

Liao and his colleagues in the CBRC have recently participated in formulating some international regulatory rules, the government official and financial expert said.

Li Jian-ge, Chairman of China International Capital Corp Ltd and a former adviser to the State Council, also sees a rising China in the global arena as the country's economy quickly recovers from the crisis.

"China's economic recovery is becoming more and more obvious now," thanks to the 4-trillion yuan stimulus package, Li, who is an economist, said.

China's economy grew 7.7 percent in the first three quarters of the year compared with the same period last year, and is expected to expand 8 percent for the whole year, despite about a 20 percent drop in exports.

Li attributed the resilience in the country's economy to the central government's quick and decisive actions in response to the crisis, including the massive stimulus package and many fiscal measures.

He expects the central government to maintain the current accommodative monetary policy at least until the middle of next year to sustain economic recovery.

"I believe (the government) will maintain its support for the economy next year," he said.

As a result of the relaxed monetary policy, banks in the country lent out a record 8.9 trillion yuan in loans in the first ten months of the year, raising worries about potential credit risks.

However, CBRC's Liao tried to play down the concerns by noting that banks' bad debts remain at record-low levels, both in terms of absolute quantities and ratios.

He said most of the loans extended by banks so far have flowed into the real economy, with the remaining staying in the banking system.

There is no evidence that some bank loans have found their way into the stock market, he said.

(HK Edition 12/08/2009 page4)