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Monday, April 10, 2017, 18:44

Regulatory glare on China's financial sector widens

By Xinhua

 Regulatory glare on China's financial sector widens
An employee counts banknotes at a China Construction Bank Corp branch in Haian, Jiangsu province. The China Banking Regulatory Commission announced on Monday that targeted measures will be taken to address financial risks in the banking sector and stick to the bottom line of no systemic financial crisis. (Xu Junbai / For China Daily)
BEIJING – China's rapidly expanding financial industry is being placed under greater regulatory scrutiny as authorities step up efforts to curb widespread malfeasance in the sector.

Targeted measures will be taken to address financial risks in the banking sector and stick to the bottom line of no systemic financial crisis

China Banking Regulatory Commission,
In the first quarter of 2017, China's banking regulator meted out 485 administrative penalties with fines totaling 190 million yuan (about US$27.52 million).

In all, 197 people were held accountable for banking irregularities in the period, of which 19 were disqualified for executive positions and 11 barred from banking business, according to the China Banking Regulatory Commission (CBRC).

The CBRC announced on Monday that targeted measures will be taken to address financial risks in the banking sector and stick to the bottom line of no systemic financial crisis.

A CBRC guideline outlines fields for enhanced risk control, including traditional sectors such as credit, liquidity, real estate and local government debt as well as non-traditional areas including bonds, financial products, Internet finance and cross-border financial impact.

In remarks published Sunday, Chinese Premier Li Keqiang pointed out that the country's financial sector was vulnerable to risks such as bad assets, bond defaults, shadow banking and Internet financing, with frequent illegal and corrupt activities.

On the same day, China's top anti-graft authority announced that Xiang Junbo, chairman of the China Insurance Regulatory Commission, was being investigated for suspected serious violation of the code of conduct of the Communist Party of China.

Premier Li's message was the latest from high-level officials who have repeatedly highlighted the importance of containing financial risks as the country faces a build-up of debt and booming new financial products challenge regulations.

Since China's tone-setting economic conference last December pledged preventing financial risks as a priority, regulators from the banking, securities and insurance sectors have made solid efforts to clean up the market.

In the first quarter of 2017, China's banking regulator slapped fines totaling 190 million yuan (about US$27.54 million).

In the capital market, China's securities regulator has maintained zero tolerance on illegal market activities such as insider trading and stock manipulation, after the market rout in 2015 shattered investor confidence.

 
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