Date
18 January 2017
In July last year, the People's Bank of China is said to have sent a desperate email to the US Fed asking for advice in dealing with a stock market crash. Photo: Bloomberg
In July last year, the People's Bank of China is said to have sent a desperate email to the US Fed asking for advice in dealing with a stock market crash. Photo: Bloomberg

China asked Fed for a little help in dealing with market crash

China’s central bank sent an urgent message to the US Federal Reserve last year seeking advice on dealing with a stock market crash, Reuters reported.

When the benchmark Shanghai Composite Index plunged 8.5 percent on July 27, the People’s Bank of China (PBoC) is said to have sent an email to its US counterpart with the subject line: “Your urgent assistance is greatly appreciated!” 

In the message sent to a senior Fed staffer, the PBoC’s New York-based chief representative for the Americas, Song Xiangyan, said “my Governor would like to draw from your good experience”, according to the report.

It is not known whether the PBOC had contacted the Fed to deal with previous incidents of market turmoil.

The Chinese market crash triggered steep declines across global financial markets and within a few hours the Fed is said to have sent the PBoC a trove of documents detailing the US central bank’s actions in the wake of Wall Street’s “Black Monday” crash in 1987.

The email messages, which Reuters obtained through an Freedom of Information Act request, show how alarmed Beijing has become over the deepening financial turmoil.

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