1st LD Writethru-China Focus: Xi stresses financial security

President Xi Jinping has called for concrete efforts to maintain China's financial security.

Xi, also general secretary of the Communist Party of China (CPC) Central Committee, made the remarks Tuesday afternoon at a group study attended by members of the Political Bureau of the CPC Central Committee.

Financial security is an important part of national security and a key foundation for the stable and healthy development of the economy, according to Xi.

Financial vitality will lead to economic vitality, and financial stability is of vital importance to economic stability, Xi said.

Maintaining financial stability should be treated as a big event in governing a state, and work in this respect must be done well with concrete efforts.

"Finance is the core of a modern economy," said Xi. "We must do a good job in the financial sector in order to ensure stable and healthy economic development."

After years of financial reforms and development, China has become an important global financial power, Xi said.

China's overall financial condition is good, and financial risks are controllable, according to Xi.

However, China's financial development is still facing risks and challenges, including external shocks leaking from the monetary and fiscal policy adjustment of some countries.

"Accurate judgement of potential financial risks serves as a precondition for maintaining financial security," Xi said.

The country must strengthen risk prevention and intensify supervision in order to avoid neglecting any risk or hidden trouble.

Xi vowed to deepen reforms to improve the financial sector's competitiveness and capacities for risk resistance and sustainable development.

China's financial industry should proceed from national conditions, said Xi. China needs to learn from other countries, but should not simply copy from them.

Xi further listed six tasks to maintain financial security, including deepening financial reform and improving the financial system by promoting accountability and compliance among financial institutions; strengthening supervision over systemically important financial institutions, financial holding companies and financial infrastructure to prevent any supervision loopholes; fighting violations of laws and rules, with a focus on comprehensive investigation of financial markets and internet finance.

Xi encouraged intensifying financial support to the real economy by developing a multi-level capital market, expanding the scope of direct financing, and providing more financial support to bolster key areas such as advanced manufacturing.

Leading cadres should enrich their financial knowledge and use it to boost economic development and prevent financial risks, said Xi.

Xi also underscored the CPC's leading role in financial work.

On the same occasion, China's central bank governor Zhou Xiaochuan made a statement on macro-control policies and maintaining financial security.

Chairman of China Banking Regulatory Commission Guo Shuqing expressed his opinions on how to tackle banking system risks to safeguard financial stability.

Liu Shiyu, head of the China Securities Regulatory Commission, reported on his understanding of the relationship between the development of the capital market and risk control.

Chen Wenhui, vice chairman of China Insurance Regulatory Commission, talked about his views on risk control and enhanced supervision of the insurance sector, vowing to hold the bottom line of maintaining financial security. Endi