China forms new financial regulator

China forms new financial regulator

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President Xi Jinping announced the setup of a cabinet-level committee to coordinate China's financial regulation at a high-level meeting that ended Saturday, as Beijing focuses on keeping risks at bay ahead of a twice-a-decade leadership shuffle later this year. At the two-day gathering that sought to establish a broad framework to make China's regulatory system more cohesive, Xi said a new group, called the State Council Financial Stability and Development Committee, will be formed to make sure financial regulators can work better together, The Wall Street Journal reports. He said the central bank's role in preventing systemic risk will be strengthened, according to an official statement released Saturday. No detail was given about the composition of the committee. According to people familiar with the matter, one option is for the group to be placed within the People's Bank of China and headed by its governor. Details are still being hammered out, the people said.