China: the establishment of the State Administration of Financial Supervision and Administration.

Mak, Charles Ho Wang

Abstract

China is currently undergoing significant financial reform, intending to establish a centralised national financial regulatory body. This change represents a stark departure from the nation's prior fragmented regulatory strategies. The primary objectives of these reforms include addressing challenges like systemic risk, shadow banking and market manipulation within China's financial sector. As the globe's second-largest financial market, China has witnessed rapid expansion, accompanied by numerous risks. The interconnected nature of this sector implies that a single institution's collapse could potentially unleash far-reaching consequences. Additionally, shadow banking - delivering financial services beyond traditional banking - has grown rapidly, often evading regulations and jeopardising financial stability. Furthermore, instances of market manipulation in China have been prevalent. These suggested reforms aim to establish a centralised and unified financial regulatory system. The newly proposed authority will supervise banks, securities firms, insurance companies and other financial entities while regulating shadow banking and market manipulation. The primary goals of the reforms are to bolster the stability and resilience of China's financial infrastructure and protect investors and consumers. Though still in the early stages, these reforms symbolise a significant stride forward in the transformation of China's financial sector.

Citation

MAK, C.H.W. 2023. China: the establishment of the State Administration of Financial Supervision and Administration. Butterworths journal of international banking and financial law [online], 38(6), pages 438-440. Available from: https://plus.lexis.com/

• Journal Article Type: Commentary
• Acceptance Date: Mar 23, 2023
• Online Publication Date: Jun 1, 2023
• Publication Date: Jun 30, 2023
• Deposit Date: Jul 19, 2023
• Publicly Available Date: Jul 19, 2023
• Journal: Butterworths journal of international banking and financial law
• Print ISSN: 0269-2694
• Publisher: LexisNexis Butterworths
• Peer Reviewed: Peer Reviewed
• Volume: 38
• Issue: 6
• Pages: 438-440
• Keywords: Financial regulation; Banking; China
• Public URL: https://rgu-repository.worktribe.com/output/2015158
• Publisher URL: https://plus.lexis.com/