News eDaily01 May 2017

China:CIRC says that it will clean up its house to improve supervision

| 01 May 2017

The CIRC has vowed to improve the conduct of its officials after its head Xiang Junbo was placed under investigation and stripped of his post as CIRC Chairman last month.

Supervisors should earnestly take responsibility and clamp down hard against illegal and criminal activities, said a statement of the CIRC.

The insurance regulator said it had to reflect deeply on the bitter lessons of the actions of its former Chairman, Xiang, who was placed under investigation on 9 April for serious disciplinary violations.

Xiang's actions had seriously weakened the "authoritativeness and credibility" of the government's oversight, the CIRC said. "From start to finish, we will persevere in being clean, in not being ensnared by financial titans and those we oversee; we will not be dragged down by rule breakers, will not collude with the outside," CIRC said.

CIRC also announced last Friday 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.

Other Chinese financial regulators have also vowed stricter supervision to prevent systemic risks as the importance of financial stability grows amid a firming economy.

The banking regulator said on its website that it will closely monitor risks in key areas and promised solid implementation of risk control. De-leveraging 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 stabilising economy provides more room for tighter policies.

China's top political leaders agreed last Tuesday in a high-level meeting that more efforts should be made to maintain financial stability in the face of risks and challenges including external shocks.


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