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Sing Tao Daily: Xi Stresses Placing the Party’s Control over the Financial Industry

According to an article that Sing Tao Daily published, the Politburo of the Central Committee recently held a conference and invited the Central Bank, the Banking Regulatory Commission, the Security Regulatory Commission, and the Insurance Regulatory Commission. During the meeting, Xi Jinping stressed that these agencies should place safeguarding financial security as their top priority. Xi stated that, even though the overall financial risk can be controlled, there must be measures in place to prevent risk from going beyond a certain point so that the agencies “never overlook any risk and never pass by any hidden gap.” Xi also initiated an effort to conduct a complete inspection and investigation in the financial and Internet banking industry. Moreover Xi stressed that it is vital to have the Party and the central administration placed in a position to lead the financial industry. According to the article, there is a need to improve the mechanism that allows the Party to take the lead and form a financial risk prevention system nationwide.

The article quoted the analysis which stated that there might be the possibility of forming a central financial committee like the ones that were formed in 1998 following the financial crisis in Asia. Wen Jiabao, then prime minister, headed that committee, which manages the operation of the financial agencies under the central administration. In 2003 the committee was dissolved and the workload was shared among the Banking Regulatory Commission, the Security Regulatory Commission and the Insurance Regulatory Commission. The article then quoted the words that the director of the China Academy of New Supply-Side Economics gave, “As we all know, the Party has leadership over everything in China. However, if the Party’s leadership is combined with financial security work, it is obvious that it carries certain meanings.”

Source: Sing Tao Daily, April 28, 2017