Financial Crisis In China Avoided By New Financial Regulator?
Chinese new banking and insurance regulator is going to deepen the reform, developing the banking and insurance systems, that will in turn diminish the financial risk. It will additionally clean up local governments' hidden debts, cope with the shadow banking, work on lowering corporate leverage ratios and support debt-to-equity swaps with proper measures.
The intention is to tighten oversight of China's banking and insurance sectors of 42 trillion dollars. Chinese conglomerates have been suppressed for their aggressive acquisitions of overseas assets. The regulator launched a campaign to exclude officials that has anything to do with corrupt practices in the financial sector.