China's super financial regulator, the Financial Stability and Development Committee, has started its work and held its first meeting on Wednesday.
The cabinet-level committee, which will coordinate the various sectoral regulators to oversee China’s mult-faceted financial industry, is chaired by Mr Ma Kai, Vice Premier of the State Council who is in charge of the financial sector, reported the Xinhua News Agency. The establishment of the committee was announced in July at the National Financial Work Conference.
The committee will review a strategic plan for financial reforms; coordinate China’s monetary policy and financial regulation; and forge policies on financial risk management so as to maintain country’s financial stability, Xinhua said.
The committee will also supervise financial regulatory bodies, and guide local financial development.
At Wednesday's meeting, the committee approved a list of primary tasks it will carry out in the short term and stressed that the main economic regulatory philosophy of maintaining stability while seeking progress will be adhered to, the Xinhua report said.
China will stick to its prudent monetary policy, strengthen financial regulatory coordination, improve its ability to handle risks, better guide the financial system to serve the real economy and safeguard national financial security.
China's various financial sectors are supervised by separate agencies including the CIRC, the China Banking Regulatory Commission, the China Securities Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange. The sectoral regulatory arrangement has proven inadequate to stem systemic risks in cross-sectoral financial activities such as wealth management and peer-to-peer lending.
The central bank, and the banking, insurance and securities regulators will each nominate one representative to the financial stability committee as vice chairpersons to coordinate the latter's work.