Chinese Financial Reform to Focus on Strengthening Communist Party Leadership, Accelerating Growth of Direct Financing: Guo Shuqing


China’s top banking official has stressed the central leadership role of the Communist Party of China (CPC) in ongoing reforms of the Chinese financial sector.

“The fundamental requirement for deepening reform of the financial system is strengthening the central and unified leadership of the CPC Central Committee with regard to financial work,” said Guo Shuqing (郭树清), party secretary of the Chinese central bank and chair of the China Banking and Insurance Regulatory Commission (CBIRC), in a recent interview with state-owned media.

Guo highlighted several focal points for upcoming financial reform efforts in China, including:

  1. Focusing on the development of a modern central banking system. Maintaining the stability of the currency and using this to expedite economic growth. Ensuring the health and sustainability of the central bank’s balance sheet.
  2. Strengthening and improving modern financial regulation. Establishing and strengthening coordination mechanisms for the the stable development of finance. Strengthening the financial stability guarantee system.
  3. Reform and improvement of financial institution governance. Further strengthening the leadership of the party and the development of the party within financial institutions.
  4. Further accelerating the growth of direct finance. Deepening reform of the share issuance registration system.
  5. Continuing to drive shifts in the development model for the insurance and trust sectors. Standardising the third pillar of aged care insurance.