China's central bank: Global financial market volatility risks accumulate, stock market valuations reach historic highs The People's Bank of China has released the report on the implementation of China's monetary policy for the fourth quarter of 2025. The noteworthy issues and trends in the report indicate the accumulation of volatility risks in global financial markets. In 2025, the stock markets of major economies around the world will generally rise, with valuation levels reaching historical highs. However, the main driving factor for this round of rise is optimism towards artificial intelligence and related industry chains. If the development of the artificial intelligence industry falls short of expectations, geopolitical changes intensify, or major economic policy adjustments lead to a shift in investor risk preferences, it may increase market correction pressure. In addition, the rapid expansion of emerging non bank financial institutions such as private credit may also accumulate new risks in the context of some major economies promoting financial deregulation.