New secretariat to coordinate administrative affairs of Chinese financial supervision bodies
BOFIT Viikkokatsaus / BOFIT Weekly Review
2016/02
Although volatility in China’s stock and forex markets is to be expected as the country’s massive systemic reforms continue, officials’ interventions and poor communication have made matters worse than need be. The online economic news service Caixin, reported Thursday (Jan. 13) that the government plans to establish a new secretariat to coordinate the administrative actions and messaging among the central bank and the three authorities overseeing securities trading, banking and insurance markets. Many problems on China’s financial markets and the creation of a new coordinating body indicate just how far reforms of China’s markets have come and how difficult it is for officials accustomed to old regulatory system to change their approaches.