China's Financial Sector: Xi Jinping outlined sector's reform in report to 19th Party Congress

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As we mentioned, financial sector regulation has been high on the agenda for Chinese leaders. At the Party Congress in October, General Secretary Xi Jinping outlined the deepening institutional reform in the sector.

XI JINPING CPC CENTRAL COMMITTEE GENERAL SECRETARY "We will make the financial sector better serve the real economy, increase the proportion of direct financing, and promote the healthy development of a multilevel capital market. We will see that interest rates and exchange rates become more market-based. We will also improve the financial regulatory system to forestall systemic financial risks."

As pointed out in the report to the Party Congress, institutional financial reform is part of China's efforts to improve the socialist market economy. In 2017, China successfully regulated and managed some high-debt, high-risk companies, and institutions.

And the central bank has sworn to further reduce leverage, open up the financial market, manage foreign exchanges, and carry out other regulatory measures to keep the sector healthy and sustainable.