Xi Jinping tightens financial sector control as new super-regulator takes shape

  • Beijing is putting the final touches to a powerful Communist party commission that will oversee the country’s financial sector regulation, recruiting nearly 100 officials ahead of a landmark economic policy meeting next week.
  • The Central Financial Commission, which President Xi Jinping announced in March, will serve as the de facto watchdog, planner and decision maker for China’s $61tn financial sector, weakening the power of state institutions such as the People’s Bank of China and China Securities Regulatory Commission.
  • Experts said the commission could act more quickly to close regulatory loopholes in areas such as shadow banking and peer-to-peer lending.
  • In a sign of the importance attached to financial sector reform, Xi on Tuesday visited the PBoC and the foreign exchange regulator for the first time since he became president a decade ago, two people who witnessed his visit said.

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