The Chinese regulator has vowed to tighten control over creators of major financial risks. This was reported by Bloomberg.
Li Yunze, head of China’s financial market regulator, said in an interview with Xinhua that the country should strengthen efforts to prevent financial risks. However, the approach should not be universal. Each province will get its own plan.
According to Li Yunze, the “one state, one policy” principle will prevail in risk management matters.
The regulator will focus on identifying individuals who pose serious risks and bringing order to markets. China will also establish mechanisms for resolving disputes in the field of consumption and protecting consumer rights. Analysts pointed out that there was an increase in local debt due to the slowdown of the economic recovery after the lifting of strict quarantine measures.
Before that, Chinese officials promised to optimize structure of debt of local developers to improve the country’s economy.
Previously rating agency S&P Global reportedIt was stated that the debt crisis in China could cost local banks trillions of yuan.