China shakes up financial regulators

China shakes up financial regulators

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The Chinese government is trying to ensure financial-system stability in a pivotal political year by focusing on the officials who do the regulating, according to The Wall Street Journal. China has removed three of its four top financial-industry regulators over the past year or so as it also tightens the reins on banks, brokerages and insurers. The latest to fall was liberalizing insurance regulator Xiang Junbo, who jazzed up a stodgy business but caused ripples beyond his agency's purview. After encouraging liberalization for banks, brokers and insurers in hopes of fueling a slowing economy, Beijing is becoming increasingly anxious about possible financial shock. In the past, as China let financial firms experiment, China's various regulatory agencies failed to coordinate. New regulators are emphasizing tougher fundamental risk control by trying to clearly delineate​ responsibilities.