The storm was centered on Wall Street, but the typhoon inevitably reached China. Specifically, the negative impact on China is as follows:
First, the security of China's investment assets in the United States. At present, China has about 1 trillion US dollars of foreign exchange reserves invested in the United States. Among them, the proportion used to buy US Treasury bonds and US institutional bonds is roughly half to half. Originally, the US government announced the takeover of Fannie Mae and Freddie Mac, which basically ensured the safety of China's investment in US foreign reserves. However, the bankruptcy of Lehman Company once again left the safety of some of its assets in uncertainty. If Lehman's collapse is only the beginning of another deterioration of the subprime mortgage crisis, China's foreign exchange reserves will suffer even greater losses.
Second, the huge impact on the China stock market. The departments concerned are trying to take various measures to restore people's confidence in the China stock market. However, the bankruptcy of Lehman and its bleak prospects for the world economy and international finance made the Shanghai Composite Index, led by bank heavyweights, fall below 2,000 points on September 16, setting a new low since this round of adjustment. For a long time, the capital market had to be restricted by Lehman's bankruptcy.
However, in addition to the negative effects, the bankruptcy of Lehman Brothers will also bring some positive effects to China. It can be measured in two ways. On the one hand, let China get out of the myth of market fundamentalism and enlighten policy makers to pay attention to the limitations of the market itself and the danger of excessive financial innovation; On the other hand, it will enhance China's position in the international financial system. China's huge foreign exchange reserves, if properly used, will be able to play a constructive role in the global financial turmoil.
Whether it is negative or positive, the impact has already occurred. In order to minimize the destructiveness of Lehman's bankruptcy, China should immediately take the following two measures: at home, pay more attention to the construction of its own financial system, conduct stricter bank supervision on the basis of full evaluation, build a stronger firewall and guard against financial risks; Externally, strengthening communication and coordination with the United States in related fields should not only minimize losses, but also give play to the positive role of creditors and exert favorable influence on the policy formulation of American government departments.