Xi Jinping summons China’s financial watchdogs in rare move, warning them to watch out for risks
President’s move reflects concern about shocks that could lead to crisis or even social disorder ahead of key party conference this autumn
In an unusual move, President Xi Jinping on Wednesday summoned the country’s finance industry watchdogs and ordered them to take stock of financial risks and uphold regulatory vigilance, reflecting his deep concern about dangers facing China’s economy.
“We must not neglect a single risk factor or ... hidden danger,” Xi was quoted as saying by Xinhua. “Safeguarding financial security is a strategic and fundamental matter for China’s social and economic development.”
Xi’s remarks, made at a “group study meeting” of the 25-member Politburo of the Communist Party, come as Beijing cracks down on the financial industry, runs after tycoons, addresses stock market irregularities and reins in off-balance-sheet operations of banks.
Xi is trying to reduce risks in the financial sector that could lead to crisis or even social disorder ahead of a key party conference this autumn, taking a lesson from the stock market rout in the summer of 2015 that wiped out trillions of yuan in value and undermined Beijing’s credibility.