China’s New Effort to Tame Its Financial System May Disappoint
- 7 years ago
China’s New Effort to Tame Its Financial System May Disappoint
The decision to hold the committee as President Trump arrived in Beijing for a meeting with Mr. Xi may be an indication
that the Chinese leadership is still focused on the country’s financial vulnerabilities, even if a long-term leader to address those vulnerabilities has not yet been chosen
BEIJING — China on Wednesday released fresh details about a new financial regulatory body intended to calm a financial system
that in recent years has endured a stock market crash, a huge exodus of money outside the country and the rapid accumulation of debt.
Official Chinese media reported late Wednesday that a new Financial Stability
and Development Committee had held its first meeting, nearly four months after President Xi Jinping ordered its creation.
At the meeting, Mr. Ma stressed that China’s financial system should serve the real economy, according
to the official Xinhua news agency — namely, making money available to businesses that need it.
While he remains a vice premier in the Chinese government, he lost his seats on senior decision-making
bodies within the Chinese Communist Party amid a broad reshuffle last month.
Many had speculated that Mr. Xi might combine the country’s central bank with the agencies
regulating securities, banking and insurance to create a financial superregulator.
But the details may raise more questions than they answer,
and could disappoint those looking for a strong hand to rein in the financial system underpinning the world’s second-largest economy.
The decision to hold the committee as President Trump arrived in Beijing for a meeting with Mr. Xi may be an indication
that the Chinese leadership is still focused on the country’s financial vulnerabilities, even if a long-term leader to address those vulnerabilities has not yet been chosen
BEIJING — China on Wednesday released fresh details about a new financial regulatory body intended to calm a financial system
that in recent years has endured a stock market crash, a huge exodus of money outside the country and the rapid accumulation of debt.
Official Chinese media reported late Wednesday that a new Financial Stability
and Development Committee had held its first meeting, nearly four months after President Xi Jinping ordered its creation.
At the meeting, Mr. Ma stressed that China’s financial system should serve the real economy, according
to the official Xinhua news agency — namely, making money available to businesses that need it.
While he remains a vice premier in the Chinese government, he lost his seats on senior decision-making
bodies within the Chinese Communist Party amid a broad reshuffle last month.
Many had speculated that Mr. Xi might combine the country’s central bank with the agencies
regulating securities, banking and insurance to create a financial superregulator.
But the details may raise more questions than they answer,
and could disappoint those looking for a strong hand to rein in the financial system underpinning the world’s second-largest economy.