China's Xi says to accelerate market opening, expand imports - state radio

Bruno Cirelli
Luglio 17, 2017

Chinese President Xi Jinping said the central bank will play a stronger role in defending against risks, calling for more work on safeguarding the financial system and modernising its regulatory framework.

Three tasks are highlighted in the meeting, including making the financial sector better serve the real economy, containing financial risks and deepening financial reforms.

"We need to continue to utilize foreign investment to push forward supply-side reform and elevate our economy to catch up with the global innovation pace", Xi said.

Developing direct financing will be prioritized while indirect financing structure should be optimized by accelerating strategic transformation of state-owned major banks and developing small and medium-sized banks and private financial institutions, he said.

Li Huiyong, a senior analyst with Shenwan Hongyuan Securities, said the reiteration of the role of the financial sector points out the direction of its development and the emphasis on direct financing is also reassuring for the stocks and bond markets.

Guarding against systemic financial risks is the eternal theme of financial work and the government should take stronger initiative to monitor, warn against and deal with risks in a timely manner, Xi said. At the two-day gathering that sought to establish a broad framework to make China's regulatory system more cohesive, Xi said a new group, called the State Council Financial Stability and Development Committee, will be formed to make sure financial regulators can work better together, The Wall Street Journal reports.

The country will also resolutely deepen financial reforms including improving financial regulation coordination and shoring up weak links in supervision.

China will proactively prevent and resolve systemic financial risks, and step up efforts to reduce leverage in the economy, the official Xinhua News Agency reported, citing Xi.

Lian Ping, chief economist at Bank of Communications, said such a committee will help improve the effectiveness of regulation and address challenges brought by increasingly mixed financial services.

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