Finance is the “blood and pulse” of the economy, and it is the sector’s “divine vocation” to serve the real economy, the official Xinhua News Agency quoted Xi as saying.
Xi called for greater accountability for financial regulators at the meeting, saying it would be “negligence of duty” if regulators fail to identify risks in time, and it would be “malfeasance” if they fail to report and contain the identified risks.
The main financial regulators include the China Banking Regulatory Commission, the China Securities Regulatory Commission (CSRC) and CIRC.
In 2015, a poorly coordinated response to a stock market crash in China spurred scrutiny on the government’s response. Premier Li Keqiang openly criticized financial regulators as not responding sufficiently.
Xi said on Saturday that regulators must share industry data within their jurisdictions and coordinate their financial regulations.
The financial work conference comes ahead of a once-in-five-year congress of the Communist Party in the autumn, where Xi is expected to further consolidate his hold on power.
“Traditionally the (financial) conference is presided by the premier, but this time, not only was the big boss (Xi) there, people from the anti-corruption watchdog and the parliament advisory body were there too,” said a person who follows Chinese regulatory developments.
At the conference, Premier Li said China will maintain prudent monetary policy and an appropriate credit growth rate while keeping liquidity basically stable.
“China’s plans to ameliorate systemic risk, while laudable, are also significantly driven by the desire for an unblemished 19th Party Congress,” said Brock Silvers, managing director of Kaiyuan Capital, a Shanghai-based investment advisory firm.
“Regulators have yet to announce detailed steps, and probably won’t do so prior to the Congress,” he said. “In the interim I don’t expect major changes, such as the creation of a unified super-regulator.”