China finance minister says ‘Brexit’ has heightened uncertainty for markets

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Updated: June 26, 2016 7:02:10 PM

China's finance minister said on Sunday Britain's vote to leave the European Union has heightened uncertainty for markets but described the recent market reaction as "excessive" with the real implications of the vote likely in five to 10 years.

Lou Jiwei, China's Minister of Finance, made the comments at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. (Reuters)Lou Jiwei, China’s Minister of Finance, made the comments at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing. (Reuters)

China’s finance minister said on Sunday Britain’s vote to leave the European Union has heightened uncertainty for markets but described the recent market reaction as “excessive” with the real implications of the vote likely in five to 10 years.

Lou Jiwei, China’s Minister of Finance, made the comments at the first annual meeting of the Asian Infrastructure Investment Bank in Beijing.

The “Brexit” decision “will cast a shadow over the global economy… The repercussions and fallout will emerge in the next five to 10 years,” Lou said.

“It’s difficult to predict now,” he said. “The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view.”

Stock markets around the world plunged in the wake of the referendum while the Sterling’s value also plummeted.

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