China’s top economic advisor has convened the inaugural meeting of the new Financial Stability and Development Committee, revealing a membership comprised of the country’s senior-most regulatory figures.
The meeting of the State Council’s FDSC was convened on 2 July by vice-premier and senior economic advisor Liu He (刘鹤), for the purpose of discussing key risk prevention strategies.
The meeting has served to reveal the membership of the FDSC, which includes:
- Liu He as chair;
- Yi Gang (易纲), governor of the Chinese Central Bank, as vice-chair and office chair;
- Ding Xuedong (丁学东), deputy-secretary general of the State Council as, as vice chair;
- Guo Shuqing (郭树清), chair of the China Banking and Insurance Regulatory Commission;
- Liu Shiyu (刘士余), chair of the China Securities Regulatory Commission;
- Pan Gongsheng (潘功胜) , vice-chair of PBOC and head of the State Administration of Foreign Exchange;
- Han Wenxiu (韩文秀), vice-chair of the Central Leading Group on Financial and Economic Affairs;
- Lian Weiliang (连维良), vice-chair of the National Development and Reform Commission;
- Liu Wei (刘伟), vice finance minister.
The majority of the FDSC’s current members also hold seats on the central bank monetary policy committee.
FDSC will coordinate with seven other key central government or party agencies, including the Central Discipline Inspection Commission, the Organization Department of the Communist Party of China (CCP), the Publicity Department of the CCP, the Central Cyberspace Affairs Commission, the Ministry of Public Security, the Ministry of Justice and the Supreme People’s Court, many of whose senior leaders participated in the meeting.
Shao Yu (邵宇), chief economist with Dongfang Securities, said to 21st Century Business Herald that the the goal of cooperation with the central agencies is to expand overall regulatory coordination.
Coordination between these central agencies marks a major change compared to the preceding financial regulatory model, which saw each of them act more independently.
Analysts point out that in the past individual regulatory agencies possessed only limited understanding of the overall financial market, which could cause them to overlook certain forms of risk due to its interconnected nature.