Brexit will create uncertainty for markets in China, says nation's finance minister

China's Finance Minister Lou Jiwei has expressed concerns about Britain's decision to move out of the European Union.

He said that the referendum vote in the UK will heighten uncertainty for markets in his country.

"It's difficult to predict now.The knee-jerk reaction from the market is probably a bit excessive and needs to calm down and take an objective view. If (Brexit) is an important landmark in terms of a reversal of globalisation, I think that's very bad for the world, it's very bad for China, " Jiwei was quoted, as saying.

Jiwei was speaking at the just concluded first annual meeting of the Asian Infrastructure Investment Bank in Beijing.

 

"China is perhaps one of the least impacted economies in the world by the event of Brexit. I don't expect a global recession or another global financial crisis," he said.

"I think the impact of Brexit is significant, but not of the same size and magnitude of the one we had 2007 to 2009," he added.

Michael Falcon, CEO of Global Investment Management Asia Pacific at JP Morgan, said he expects more market volatility but doesn't think the vote would derail a global recovery.

"It is a shock, not a crisis and so far markets seem to be handling this pretty well," Falcon said at the World Economic Forum conference.