Moved by the spirit
Regulators are honing their priorities following the Central Financial Work Conference (CFWC) earlier this week.
On Wednesday, the financial regulator (NFRA) and securities regulator (CSRC) published readouts of internal study sessions where they discussed implementing the spirit of the conference.
The NFRA's big takeaway is that “preventing and resolving” risk is (still) a priority:
- “[We must] use strong measures to address existing problems, take early and minor actions to prevent potential issues, and firmly safeguard against systemic financial risks.”
Meanwhile, the CSRC is focused on ensuring capital markets better support innovation and industrial upgrading:
- "[We must] provide more precise and robust support for high-level technological self-reliance...and guide private equity venture capital funds to invest early, invest in smaller ventures, and invest in technology.”
The CSRC also wants domestic futures exchanges to become the venue for setting global prices for commodities, a central plank of Beijing’s strategy for promoting RMB internationalization.
- Additionally, it wants to attract more medium and long-term funds into capital markets.
Get smart: None of this comes as a surprise.
- These goals have been on the regulators’ dockets for years.
Get smarter: Most of the key regulatory bodies overseeing the financial sector have relatively new officials at their helms.
- The priorities of the CFWC are the issues that will shape their leadership terms – and their legacies.
Our take: The issues aren’t new, but we expect regulators will inject new energy into dealing with them.