BEIJING – China has established a national committee to oversee financial stability and development and coordinate sector reforms, regulatory changes and monetary and fiscal policy issues, state media Xinhua reported on Thursday.
The new Cabinet-level regulatory will be headed by Chinese Vice Premier Ma Kai and will be under the direct control of the State Council.
According to the Xinhua report, the committee’s first meeting was held on Wednesday where Ma said China will retain its prudent monetary policy, strengthen financial regulation and contain domestic and international risks.
The Committee’s functions will be complemented by the People’s Bank of China, the country’s central bank and its main monetary policy body.
Lian Ping, chief economist at the state-owned Bank of Communications, said the committee will address the systemic weaknesses in the world’s second largest economy and address existing blind spots in financial supervision and arbitration.
China had hinted at the establishment of the body during a national summit on financial services held in July this year.