(Bloomberg) — China’s regulator wants provinces to draw up their own plans to deal with financial risks, according to a report, about a month after officials pledged to create a mechanism to resolve local debt issues.
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China’s Xinhua News Agency quoted Li Yunzhi, head of the National Financial Regulatory Administration, as saying in a press statement that the country must make a greater effort in managing financial risks, but policies must be designed, avoiding a one-size-fits-all approach. interview. Provinces should develop their own policies on how to deal with risks, according to the report.
The world’s second-largest economy is struggling for momentum this year, as the recovery from restrictive Covid-03 policies proved weaker than expected and the real estate crisis persisted. This has led to successive waves of support from central and local authorities, but some economists have argued that government debt is now too concentrated at the local level.
In terms of risk management, there will be “one province, one policy,” Lee was quoted as saying in the question-and-answer article.
“Risk prevention and management are eternal topics,” Lee said. He added that the agency will focus on searching for people who cause great risks, pledging to deepen the so-called correction of chaos and disruptive behavior in the markets.
In late October, the two-day Central Financial Work Conference, attended by President Xi Jinping, pledged to improve the debt structure of central and local governments. At the meeting, officials also pledged to establish a process to resolve debt risks associated with local authorities.
In the Xinhua article, Li said China will also establish a mechanism to resolve disputes over consumption, as well as another mechanism to protect consumers’ rights.
On Saturday, Xinhua News Agency published an interview with People’s Bank of China Governor Pan Gongsheng in which he reiterated that the central bank will keep monetary control under control. Analysts typically view this type of language as a reference to how the People’s Bank of China is reining in liquidity and the money supply.
-With assistance from Yujing Liu.
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