Written by Joe Cash
Beijing, February 20 (Reuters) – The heads of China's financial watchdog have vowed to continue their campaign to ensure the financial sector adheres to Communist Party values and contributes to the economy while avoiding “excessive” and “reckless” risks. The party newspaper reported on Tuesday.
President Xi Jinping has expressed dissatisfaction with the $63 trillion financial sector and is taking steps to improve his ability to set the party's direction in his third term. create party organs such as the Central Financial Commission;
“The financial powerhouse we want to build is a socialist financial powerhouse under the leadership of the Chinese Communist Party,” the party's top financial policy body, the Ideology Task Force, said in an article in People's Daily.
The article was a joint responsibility of the Central Financial Commission Secretariat and the Central Financial Work Commission, adding that “stable financial development is guaranteed by strict and strict supervision.”
It also encouraged market participants to “avoid reckless behavior” and “establish a correct outlook on business, performance and risks, and avoid excessive risks beyond their ability to bear.”
The remarks came as party leaders have yet to concede on a sweeping rescue plan in the face of a declining stock market, overleveraged developers and heavily indebted local governments.
Instead, they argue that socialist economies work as long as market participants do not deviate from discipline.
The world's second-largest economy hit its growth target of about 5% last year, but analysts say it will need to revive market-oriented reforms to prevent growth from slowing to about 3% a year. states that it is necessary. feel Something like an economic recession.
Mr. Xi has laid out a long-term vision for “Chinese-style modernization” in 2022, with a goal of doubling the economy by 2035, which requires average annual growth of 4.7%, according to government economists.
In recent months, several former senior Treasury officials have exiled from a party or Paid It also includes bribes, as Mr. Xi's anti-corruption campaign permeates this sector.
The watchdog called on the financial industry to “adhere to market rules and professional ethics”, adding: “We are determined to win the fight against corruption in the financial sector.”
They warned financiers to “focus their innovations on serving the real economy and not engage in self-inflated pseudo-innovations.”
(Reporting by Joe Cash; Editing by Clarence Fernandez)
((Joe.Cash@thomsonreuters.com;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
