China to make plans for Greek euro exit risk

The Chinese government has called on key agencies including the central bank to come up with plans to deal with the potential economic risks of a Greek withdrawal from the euro zone, three sources with knowledge of the matter told Reuters on Monday. The sources said the plans may include measures to keep the yuan currency stable, increase checks on cross-border capital flows and stepping up policies to stabilise the domestic economy.
As investor concerns over Greece's possible exit from the euro zone grow, the central government has called on related state agencies, including the National Development and Reform Commission, the central bank and the banking regulator, to discuss contingency plans, the sources said.
"It's very urgent," a source with direct knowledge said. "The government has asked every department to analyse measures to cope with a Greek exit from the euro zone and make their own suggestions as soon as possible." Late last month, Premier Wen Jiabao warned at a state council meeting that "downward economic pressure is increasing". The government has already announced a raft of measures to support economic growth, which is expected to slide this year to its weakest pace since 1999.