China’s Banking Regulator Says Common Prosperity at the Core of New Rules for Urban Migrant Finance

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The China Banking and Insurance Regulatory Commission (CBIRC) says that advancing Xi Jinping’s “common prosperity” policy is one of the key goals of new rules on financial services for new Chinese urbanites.

The “Notice on Strengthening Financial Services Work for New Urbanites” (关于加强新市民金融服务工作的通知) released at the start of March called for “raising the accessibility and convenience of financial services for new urbanites, and pragmatically strengthening the sense of good fortune and security of new urbanites.”

CBIRC officials have since expanded upon the implications of the Notice, telling journalists at a press conference held on 25 March that its goal is to “satisfy the longing of the people for a better life, and expedite common prosperity for all of the people.”

CBIRC officials highlighted four key focal points in particular:

  1. Expediting entrepreneurship and employment. Encouraging banking and insurance institutions to optimise credit ratings technology and reduce the entrepreneurial financing costs of new urbanites. Expanding the vigour of financial support for micro-and-small enterprises that create large volumes of jobs for new urbanites.
  2. Satisfying the secure living requirements of new urbanites. Encouraging banks and insurance institutions to optimise home financing services, expedite increases in the supply of welfare housing, and support the healthy development of the rental housing market.
  3. Supporting training and education. Encouraging commercial banks to strengthen cooperation with local governments to provide financial support to vocational training for new urbanites.
  4. Raising the the level of health insurance services, supporting insurers in strengthening product innovation, and actively connecting with relevant local enterprises to provide flexible and convenient group health insurance products.

“Regulators will unveil accompanying policies, drive integration and sharing of enterprise-related credit information, and accelerate information connection between taxation, customs and power authorities with financial institutions,” said CBIRC.

“This will gradually resolve the problem of information asymmetries between banks and insurers.”