China's new finance regulator will gain real power

Thursday, July 27, 2017


Reform of financial regulation in China.


The National Financial Work Conference, a secretive five-yearly meeting that decides on major financial reforms, was finally held on July 14 and 15, after being delayed twice. The Conference established a Financial Stability and Development Committee under the State Council that will work to ensure better regulatory coordination to tackle debt and shadow banking risks.


  • 'Financial reform' now means regulation rather than opening; measures such as renminbi internationalisation will be slower and more prudent.
  • More heads will roll in the financial sector (public and private), given enhanced accountability for wrongdoing or risk-prone actions.
  • Foreign financial institutions will need to rethink their government relations strategy and readjust to the role of the new stakeholder.
  • Approvals for stock market listings will sustain their current momentum as direct financing, especially equity financing, is encouraged.
  • Local government debt will likely decrease now that local officials have lifelong liability for bad debt-management decisions.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.
To read the full version of this content please select one of the options below
You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
Would you like to purchase this content for your university? Click the button to visit our Expert Briefing product page for purchasing information.
If you think you should have access to this content, click the button to contact our support team.