Tough stance against financial risks set to continue in 2018: experts

Source:Xinhua-Global Times Published: 2017/12/21 23:18:40

China will continue to take a hardline stance to curb financial risks, the Xinhua News Agency reported on Thursday, citing experts. 

At the Central Economic Work Conference, which concluded Wednesday, senior leaders agreed to maintain the resolute crackdown on irregular and illegal activities in the financial sector to contain risks.

"The meeting sent a signal that regulations for the financial industry will further tighten as a healthy and stable financial market is key for China's sustainable development," said Yang Zhiyong, a researcher with the Chinese Academy of Social Sciences (CASS).

Throughout 2017, the authorities have taken steps to curb widespread malfeasance in the rapidly expanding financial market. The latest message from China's top leadership is that there will be no letup in the crackdown.

The area is one of what central authorities have called the three tough battles, namely controlling risks, reducing poverty and tackling pollution.

In the coming three years, China will seek to foster a "virtuous circle" between finance and the real economy and the property sector, as well as within the overall financial system, according to the statement.

Compared with the statement from last year, analysts have noticed the absence of "deleveraging" in the wording.

Although the statement did not mention deleveraging, financial risk control is still a priority given that defusing major risks is one of the three tough battles that China has vowed to fight, read a research note from China International Capital Corp.

"China needs to foster a long-term mechanism to provide more solid support for risk prevention," said Zeng Gang, a CASS researcher.

Posted in: ECONOMY

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