China's financial sectors have functioned steadily and are capable of coping with the current risks, the National Financial Regulatory Administration (NAFR) said on Tuesday.
Since the start of this year, authorities have stepped up financial risk prevention and control efforts, strengthen market supervision, and enhance financial services to better contribute to the real economy, NAFR director Li Yunze told a press conference in Beijing.
The administration has guided small and medium financial institutions to defuse risks through reform to avoid spillovers. Banks and insurance institutions are encouraged to help defuse risks arising from the property market and local government debt, Li said.
"At present, specific reform and risk reduction plans are in place in areas where high-risk institutions are concentrated. The tailored 'One Province, One Policy' strategy for financial risk management has been promoted in a prudent and orderly manner. We also lead banking and insurance institutions to actively assist in efforts to defuse real estate and local government debt risks. The country's financial sectors, especially large financial institutions, are functioning well with controllable risks," said the official.
The administration will guide the banking and insurance sectors to focus on their main businesses and achieve mutual complementarity. In promoting development, more financial services will be provided in key areas and to shore up weak links.
"By the end of August this year, loans to high-tech industry and medium- and long-term loans to manufacturers rose by 13.2 percent and 15.9 percent year-on-year, respectively. Inclusive finance lending to micro and small business and loans to private firms rose by 16.1 percent and 9.1 percent year-on-year, respectively," Li said.
China's financial risks controllable: regulator
