China vows to forestall systemic financial risks

China's top banking and insurance regulator will continue to act against systemic financial risks with a long-term mechanism in risk prevention and control, an official said on Oct 22.

The aim is to intensify support for the real economy and foster a virtuous cycle between the financial industry and the real economy, said Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, at the ongoing Annual Conference of Financial Street Forum 2020 in Beijing.

Amid mounting downward pressure on the economy, risks in the economic sphere may accelerate the transformation into financial risks, Liang said, adding that the country will step up efforts to forestall and defuse such risks while adhering to high-quality economic development.

Liang stressed the need to expedite the establishment of a long-term mechanism to contain financial risks, and improve the emergency disposal mechanism for major risks in the sector.

Meanwhile, financial policies should move in tandem with fiscal, industrial and regional policies to better deal with those risks, Liang added.

The annual conference features four parallel forums centered around financial cooperation and reform in the context of global changes, aiming to offer an interactive platform for finance and the real economy.