China's top banking and insurance regulator said on Friday it will do a good job in preventing and defusing major financial risks through coordinated efforts.
At a meeting chaired by Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission, the regulator said it will stick to bottom-line thinking, follow market-oriented and law-based principles, and relentlessly prevent and defuse various types of financial risks.
The CBIRC will persevere with the disposal of risks at high-risk financial institutions, deal with a rebound of nonperforming assets, strictly prevent a resurgence of high-risk shadow banking activities, contain property developers' activities in the financial sector in multiple aspects, cooperate with local governments to mitigate risks from hidden debt and avoid triggering secondary financial risks during the process of handling risks in other areas.
The CBIRC meeting came after top policymakers in Beijing held a key meeting on Tuesday, which stressed efforts to promote common prosperity while pursuing high-quality development and coordinating work on forestalling major financial risks.
The regulator said it will continuously improve the capacity of financial institutions to serve the real economy, the part of a country's economy that produces goods and services.
To achieve this goal, the CBIRC will lay a solid foundation for financial stability, strike a balance between stabilizing economic growth and preventing risks, consolidate the trend toward an economic recovery and defuse systemic risks through high-quality development.
The regulator said it will actively promote the implementation of China's regional development strategies, promote innovative development of green finance and support the transition of carbon-intensive companies toward a green economy.
It will also optimize the allocation of financial resources to support weak links in the Chinese economy and promote common prosperity, continuously improve financial services for small businesses and private enterprises and enhance micro-governance of regional small and medium-sized financial institutions.