(Bloomberg) — China’s finance regulator is calling for provinces to develop their own strategies for managing financial risks, as reported about a month after officials committed to establishing a system to address local debt issues.
According to the Xinhua News Agency, Li Yunze, head of the National Financial Regulatory Administration, emphasized the need for a more focused approach to financial risk management, tailored to specific circumstances rather than a one-size-fits-all solution. Provinces are being urged to create their own policies for handling financial risks.
This move comes as China, the world’s second-largest economy, grapples with a slower-than-expected recovery from Covid Zero policies and a lingering property crisis. Central and local authorities have provided support, but concerns have been raised about the concentration of government debt at the local level.
Li was quoted as saying, “One province, one policy” in terms of risk management in the article, which was presented in a question-and-answer format. He stressed the importance of continuous efforts in risk prevention and management, with a focus on addressing individuals who pose significant risks and rectifying market disruption.
During the recent Central Financial Work Conference, President Xi Jinping and other officials pledged to optimize the debt structure of central and local governments and establish a mechanism to address debt risks related to local authorities.
In addition to financial risks, Li mentioned that China will create mechanisms for resolving consumption disputes and protecting consumer rights, as reported in the Xinhua article.
Furthermore, People’s Bank of China Governor Pan Gongsheng reaffirmed in an interview published by Xinhua on Saturday that the central bank will continue to control the monetary supply, indicating a commitment to regulating liquidity and money supply.
–With assistance from Yujing Liu.
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