Breaking News
Get 40% Off 0
🔎 See NVDA's full ProTips for an instant risks or rewards Claim 40% OFF

Chinese financial watchdog warns of risks as Premier Li takes helm

Published Nov 20, 2023 01:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Asian Games - Hangzhou 2022 - Closing Ceremony - Hangzhou Olympic Sports Centre Stadium, Hangzhou, China - October 8, 2023 China's Premier Li Qiang attends the closing ceremony REUTERS/Tingshu Wang/File Photo
 
USD/CNY
+0.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

BEIJING (Reuters) - China's Central Financial Commission (CFC), with Premier Li Qiang in place as its head, urged stronger supervision of risks in the multi-trillion dollar financial sector as China steps up the pace towards becoming a "major financial power".

In a meeting presided by Li, the CFC called for greater focus on developing fintech, green finance, inclusive finance, pension finance and digital finance while maintaining stability in monetary policy, according to state media.

Li's appointment, which was disclosed by state media on Monday, followed a key twice-a-decade financial policy meeting attended by President Xi Jinping at the end of October aimed at upholding the party's leadership on financial work over and above other financial regulators under the State Council, or cabinet.

Chinese leaders are trying to revive the world's second-largest economy following its exit from three years of restrictive zero-COVID policies while fending off potential financial risks from a prolonged property slump and 92 trillion yuan ($12.8 trillion) in local government debt.

Preventing financial risks must be the "eternal theme" of the sector, and innovation should be market-oriented and remain compliant with laws, according to a state media readout of the October meeting.

Echoing the October meeting, the CFC said on Monday that early risk warnings and risk disposal mechanisms must be improved.

As China moves to prevent and contain risks in the $61 trillion industry, it also needs to speed up its push to become a "major financial power" and better support a "Chinese-style" modernisation of the country, according to the CFC.

The CFC was set up this year under the ruling Communist Party as part of a broad restructuring of both party and state entities to effectively tighten the party's supervision and control of the financial sector.

He Lifeng, one of Li's four vice premiers, was named earlier this month as head of the office of the CFC responsible for running its day-to-day affairs.

The other new major financial regulator established this year was the National Financial Regulatory Administration (NFRA), a body set up under the State Council, also led by Li Qiang, the premier.

Li became China's premier in March, taking the reins from the late Li Keqiang, after becoming the second-ranking member of the party's Politburo Standing Committee, the highest tier of political power in the country, in October 2022.

Li was previously the Communist Party chief of the country's financial capital Shanghai.

($1 = 7.2111 Chinese yuan renminbi)

Chinese financial watchdog warns of risks as Premier Li takes helm
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email