China’s Banking Regulator Highlights Greater Role of CPC in Corporate Government in 2023

A senior official from the China Banking and Insurance Regulatory Commission (CBIRC) has highlighted key focal points for policy in 2023.

Speaking at the 17th 21st Century Asia Financial Forum (第十七届21世纪亚洲金融年会), CBIRC chief procurator Wang Chaodi (王朝弟) highlighted a focus on stability when it comes to financial regulation in 2023, as well as upholding the role of the Communist Party of China (CPC) in both regulatory and corporate governance work.

“[We] must firmly seize the bull by the nose when it comes to corporate governance, and strengthen the in-depth integration of party leadership with corporate governance,” Wang said.

Wang said that specific areas of focus for policy and regulatory work in 2023 will include:

1. Employing the counter-cyclical adjustment role of finance, supporting the ongoing recovery of the economy. Maintaining the continuity and stability of policy; strengthening coordination and cooperation with other areas of policy, expanding effective demand, increasing the supply of funds, optimising the lending structure and reducing the cost of finance.
2. Bearing the mission of high-quality growth, helping the development of a modernised industrial system. Wang said that “a modernised industrial system is an important sign of a modern nation, and financial support for a modernised industrial system is mandatory.” To this end, China will “expand the intensity of support for the manufacturing sector, with ongoing increases in medium and long-term loans, as well as improved service for new elite enterprises.”
3. Pragmatically implementing the responsibility of financial security, constantly preventing and dissolving financial risk. Wang said the financial sector needed to “uphold the unified leadership of the party central committee with regard to financial work” and “pragmatically advance risk disposal in key areas and at key institutions, in order to prevent regional and systemic financial risk.” This will entail “striking firmly against illegal financial activity, lawfully including all forms of financial activity within regulation, and pragmatically protecting the lawful rights and interests of financial consumers.”
4. Strengthening the mission of financial reform and opening, continually strengthening the ability to service the real economy. Wang called for “firmly and unwaveringly expanding opening, breaking through deep-seated systemic barriers in the financial sphere, and strengthening the impetus and vitality of the development of the banking and insurance sectors.” “We must continually advance the external opening of the banking and insurance sectors and encourage foreign invested financial institutions with stable operations, excellent qualifications and outstanding special traits to participate in the Chinese market and share opportunities for development.”