MNI China Press Digest March 9: New Regulator, Growth, Reforms

Highlights from Chinese press reports on Thursday:

The creation of a new financial regulator will help solve current problems in cross-supervision and fill regulatory gaps, according to the 21st Century Herald. The new framework announced at the Two Sessions, will optimise regulatory resources and be better placed to tackle systemic financial risks. Citing experts, the paper said the moves would provide better protection to investors and consumers, as well as standardise China's wealth management industry. Under the reforms, the People's Bank of China's dual-pillar framework of monetary policy and macro-control is also clearer, the paper said. The new watchdog, which will replace the existing banking regulator and absorb some responsibilities from the central bank and the securities regulator, will report directly to the State Council.

China’s financial industry is stepping up efforts to support the economy in 2023, which is a strong topic of focus at this year's National People’s Congress, according to the Securities Daily. The paper said commercial banks have been increasing support for SMEs, helping them maintain profit margins by reasonably reducing financing costs. The insurance industry is expanding personal pensions across the whole country, appropriately increasing the upper limit of investable allowances. The paper said state owned banks are providing preferential interest rates and consumer subsidies aimed at accelerating the recovery and boosting consumption.

China should implement reforms to improve its unified national market and to bolster confidence, according to an financial advisor interviewed at National People's Congress by Caixin. China’s unified market is still underdeveloped and adds significant costs for firms operating across different regions. Reforms were needed to improve the rule-of-law and standardise market mechanisms, and gradually establish the leading position of the Chinese market in the international market system. Improvements were needed to reduce segmentation caused by the dual structure of urban and rural areas, according to the advisor.