Xi Jinping tells politburo China needs financial regulations with teeth

China’s President Xi Jinping said the country’s financial regulators and local governments must take greater responsibility for defusing risks, as he chaired a Politburo meeting on Monday to review new rules for accountability.

Xi told the 24-member decision-making body that the new rules will strengthen the Communist Party’s leadership in the financial sector, according to the official Xinhua News Agency. He said the aim is to ensure that officials at all levels “establish correct views about political performance” as they carry out financial supervision to prevent and defuse financial risks. 

The Xinhua report didn’t provide any details of the new rules. It said the Politburo agreed that the overhaul will send a “powerful signal” for holding officials accountable and making sure that financial regulations “have teeth.” 

China’s policymakers pledged deeper measures to address financial risks and “hidden dangers” at their annual legislative meeting in March. Premier Li Qiang cited risks in the property sector, local government debt, and small and medium-sized financial institutions.

Monday’s Politburo meeting also reviewed measures to promote development of six central provinces including Shanxi, Anhui and Henan.