China’s financial regulator vows to cut ‘blind spots’ and ‘build an iron wall’ as new body takes shape
- Vice-Premier He Lifeng oversaw the inauguration ceremony of China’s new regulator, the National Financial Regulatory Administration (NFRA), on Thursday in Beijing
- Li Yunze was appointed as the party chief of the new body, which was set up earlier this year to prioritise financial stability, last week
China’s new regulator will strive to oversee all types of financial activities and will seek to eliminate regulatory “blind spots” and “build up an iron wall of financial security”, its newly appointed party chief said at the body’s inauguration ceremony on Thursday.
Vice-Premier He Lifeng oversaw the inauguration ceremony, which was also attended by central bank governor Yi Gang.
We’ll also transform our functions and improve [regulatory] efficiency
“We’ll do our best to fully implement the three key tasks, including serving the real economy, preventing financial risks and deepening financial reforms,” Li said during the ceremony on Beijing’s Financial Street, according to the China Banking and Insurance News, a newspaper affiliated with the regulator.
“We’ll also transform our functions and improve [regulatory] efficiency,” he added, mulling new regulatory rules to support high-quality economic development.
The focus of Li’s speech also suggested that de-risking, a landmark policy implemented in the past five years that has been weighing on the financial sector, will remain high on the agenda of China’s top leadership over the next five years.
Previously, some of the fast deleveraging work has scaled back in the property sector as a majority of private developers fell into a debt crisis, raising concerns about the risk of de-risking.
It’s an important step in China’s reform of its financial regulatory regime