China to escalate efforts to curb financial risks

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China's banking and insurance regulators have vowed to step up efforts to curb financial risks and deepen reform and opening up in the sectors.

China's economy has maintained steady growth with good momentum this year, yet new challenges remain, given potential financial risks and existing illegal financial activities, according to a meeting of the China Banking and Insurance Regulatory Commission (CBIRC) held on Wednesday.

The commission stressed that banking and insurance regulators should strengthen efforts in preventing Internet financial risks and unswervingly curb property bubbles.

Since the beginning of the year, the CBIRC has enhanced its supervision on Internet financial risks, especially Internet loans. A total of 1,483 banks and insurance companies were fined 1.64 billion yuan (about 241 million US dollars) from January to July in 2018.

The commission also highlighted the importance of strengthening financial services to better serve the real economy while constraining financial risks through deepening supply-side structural reform.

By the end of July, loans issued from banking and financial institutions grew 12.4 percent year-on-year. Loans in the infrastructure sector saw a 9.9 percent growth while the agriculture-related loans rose 7.2 percent year-on-year.

It was decided at the meeting to deepen reform and opening up in the banking and insurance sectors and substantially widen market access.

Banks and insurance companies are encouraged to explore diversified and sustainable financial plans to provide financial services for countries along the Belt and Road.

Source(s): Xinhua News Agency