President Xi backs stronger risk-reduction rule for China central bank

China Creates New Financial Regulatory Body

China Creates New Financial Regulatory Body

Chinese President Xi Jinping said on Monday that China will accelerate market opening and clear administrative hurdles to boost foreign investment, while stepping up financial regulation to fend off systemic risks at home.

Three tasks are highlighted in the meeting, including making the financial sector better serve the real economy, containing financial risks and deepening financial reforms.

Despite concerns of the fallout from risks in the financial system, analysts say stability is the word of the day ahead of a once-every-five-years Communist Party Congress.

Policymakers at the meeting also emphasized the need to develop the direct financing market to fund businesses and reduce the debt of State-owned enterprises.

Li Huiyong, a senior analyst with Shenwan Hongyuan Securities, said the reiteration of the role of the financial sector points out the direction of its development and the emphasis on direct financing is also reassuring for the stocks and bond markets. Fragmented oversight of China's financial sector has led authorities to worry about "giant crocodiles", a term that regulators have started using to describe law-breaking tycoons who circumvent regulations to grab control of other companies.

The country will also resolutely deepen financial reforms including improving financial regulation coordination and shoring up weak links in supervision.

China will set up a committee under the State Council to oversee financial stability and development and the central bank will play a stronger role in macro prudential management and guarding against systemic risks, according to Xi.

Lian Ping, chief economist at Bank of Communications, said such a committee will help improve the effectiveness of regulation and address challenges brought by increasingly mixed financial services. Premier Li Keqiang openly criticized financial regulators as not responding sufficiently.

The government will facilitate development of the social credit system and improve the legal framework governing the financial sector in accordance with domestic conditions, according to Xi.

Notícias recomendadas

  • North Atlantic Treaty Organisation  urges Turkey, Germany to settle base row

    North Atlantic Treaty Organisation urges Turkey, Germany to settle base row

    Germany is moving aircraft stationed on a bilateral basis at Turkey's Incirlik base after a dispute over lawmaker visits there.
    Loic Remy set to leave Chelsea this summer

    Loic Remy set to leave Chelsea this summer

    But for some of the clubs reportedly interested in his services, he could be a decent addition for the right price. Everton and Southampton are keen on Chelsea striker Loic Remy .
    Ce que Raquel Garrido va faire sur C8

    Ce que Raquel Garrido va faire sur C8

    Alors, regarderez-vous le nouveau talk-show " Les Terriens du dimanche " sur #C8 à la rentrée? Je suis, par définition déontologique, indépendante ", a déclaré sans rire Raquel Garrido .
  • Wayne Rooney wants Ross Barkley stay at Everton amid Tottenham speculation

    Wayne Rooney wants Ross Barkley stay at Everton amid Tottenham speculation

    Barkley made 39 appearances last term for the Toffees , scoring six goals and providing nine assists in all competitions. He has a knack of getting the best out of his players and Barkley certainly still has more potential to fulfil.
    Nationals Beef Up ML-Worst Bullpen In Trade With A's

    Nationals Beef Up ML-Worst Bullpen In Trade With A's

    Per a Ken Rosenthal report on Saturday, the Nationals are working to "trying to acquire" two of the Oakland Athletics' relievers. Madson is signed through next season at $7.67 million. "They both have had arm problems, so it could be both of them".
    Kvyat: Sainz should've seen collision coming

    Kvyat: Sainz should've seen collision coming

    I saw so many incidents and it's five or ten seconds with a pit stop possibility. It makes everything look worse than it really was.
  • What's Ahead for Iteris Incorporated (NASDAQ:ITI) After More Shorted Shares?

    The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link . The firm owned 649,100 shares of the technology company's stock after buying an additional 48,900 shares during the period.
    Yuan finds lift on China's GDP and central bank

    Yuan finds lift on China's GDP and central bank

    The amount is 38.6 percent more than last week, according to data compiled by Chongqing-based Southwest Securities. The dollar index traded as low as 95.088 in the Friday session compared to a high of 95.834.
    Etats-Unis : un tueur en série de chats condamné

    Etats-Unis : un tueur en série de chats condamné

    Dans les jours qui suivent, alors que le bourreau des matous est introuvable, il commence à "restituer" les chats qu'il a dérobés. Durant des semaines, les chats du quartier de Cambrian Park, à San Jose , disparaissaient de manière inexpliquée.
  • Paytm Mall delists 85k sellers that failed quality standards

    Paytm Mall has over 17 fulfilment centres across the country to offer consumers an efficient online shopping experience. This criterion blocks fraudulent merchants from signing up and creating a bad customer experience on the platform".
    Brexit food plan urgent to prevent 'severe' supply problems, warns report

    Brexit food plan urgent to prevent 'severe' supply problems, warns report

    No-one has warned the public that a Food Brexit carries real risks of disruption to sources, prices and quality'. He added: "At least the United Kingdom entered World War Two with emergency plans.
    Bordeaux cible un ancien du PSG au mercato — FCGB

    Bordeaux cible un ancien du PSG au mercato — FCGB

    Le FCGB a en tout cas " pris des renseignements sur sa situation " dans l'optique d'un transfert au cours des prochains jours. Toujours à la recherche d'un milieu de terrain cet été, les Girondins pourraient se tourner vers Benjamin Stambouli (26 ans ).

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.