Xi Jinping tells the Politburo that China needs strict financial regulations

Chinese President Xi Jinping said the country’s financial regulators and local governments must take greater responsibility for mitigating risks as he chaired a Politburo meeting Monday to review new accountability rules.

According to the official Xinhua news agency, Xi told the 24-member decision-making body that the new rules would strengthen the Communist Party’s leading position in the financial sector. He said the aim was to ensure that officials at all levels “establish the correct views on political outcomes” when exercising financial oversight to prevent and mitigate financial risks.

The Xinhua report does not provide any details about the new rules. It said the Politburo agreed the review would send a “powerful signal” to hold officials accountable and ensure financial regulations “work”.

At their annual legislative meeting in March, Chinese policymakers pledged to take deeper measures to address financial risks and “hidden dangers.” Premier Li Qiang mentioned risks in the real estate sector, local government debt and small and medium-sized financial institutions.

Monday’s Politburo meeting also reviewed measures to support the development of six central provinces, including Shanxi, Anhui and Henan.