While the official announcement about this proposal was not, however, on Wednesday in the third Plenum of the CPC Central Committee 19 convocation, it was decided on the reform of party and state bodies, and also approved the plan of these reforms. The documents will be submitted for consideration of session of the Supreme legislative body of the country of vsekitaisky meeting of national representatives, which will begin in a few days in Beijing.
Experts note that the system of financial regulators in China are extremely fragmented, each Department acting by itself. After the collapse of the stock market in 2015, the Chinese authorities have tightened control over the financial system, especially in the field of insurance.
In April last year in relation to the head of the Committee for management and supervision of insurance operations had started an investigation on suspicion of violation of party discipline, the wording that is usually used in China anti-corruption cases. Since then, the office remained without a leader. Last week after another corruption scandal, the Committee took over the management of one of the country’s largest insurance companies Anbang Insurance, and its head was formally charged with committing financial fraud.
In November last year, the head of the people’s Bank of China Governor Zhou Xiaochuan said that China is and will continue to be in the peak period with high likelihood of systemic risk in the financial sector. The head of the Chinese Central Bank noted that due to different internal factors potential risks and hidden risks continue to accumulate, clearly increases the vulnerability of the financial system. The main risks, Zhou Xiaochuan, called financial leverage, liquidity risk, corporate credit risk, debt risks of local governments and shadow banking system.