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Chinese financial regulators vow stricter supervision

Updated: Apr 29,2017 7:48 AM     Xinhua

BEIJING — Chinese financial regulators have vowed stricter supervision to prevent systemic risks as the importance of financial security grows amid a firming economy.

The top insurance regulator on April 28 announced a targeted campaign to crack down on violations and restore market order, with measures against false capital contribution, chaotic corporate governance, irregular investment and fake data.

Supervisors should earnestly take responsibility and act hard against illegal and criminal activities, said a statement of the China Insurance Regulatory Commission (CIRC).

The CIRC pledged more efforts to find loopholes and fix shortcomings in supervision.

Meanwhile, the banking regulator said on its website that it will closely monitor risks in key areas and promised solid implementation of risk control. Deleveraging and improving weak areas were also highlighted in the statement.

The State Administration of Foreign Exchange said it will implement more coordinated supervision and take actions against violations in the forex market.

The announcements suggested Chinese authorities are taking concrete measures to address financial risks and curb asset bubbles as a stabilizing economy provides more room for tightened policies.

China’s policymakers agreed on April 25 in a high-level meeting that more efforts should be made to maintain financial security in the face of risks and challenges including external shocks.

Risk prevention and supervision must be improved to avoid neglecting any risks or hidden trouble, according to the meeting.

The insurance regulator also vowed to improve the conduct of officials as China’s top anti-graft authority said earlier this month that the CIRC head was removed from his post and put under investigation.

Having learned bitter lessons, the CIRC will persevere in remaining free of corruption.

Xiang Junbo, chairman of the CIRC, is being investigated on suspicion of a serious violation of the code of conduct of the Communist Party of China.