China’s Xi: PBOC to play bigger role in managing financial risk

Reuters out with weekend’s comments from China’s President Xi Jinping, delivered during the once every five years China National Financial Work Conference.

Key Headlines:

Financial security is a vital part of national security

The People's Bank of China will take on a bigger role in macro-prudential management & in averting systemic risk in the financial system

China will strengthen the Communist Party's leadership in the financial sector

A Financial Stability and Development Committee will be set up (directly under the State Council)

Authorities concerned about "giant crocodiles" - law-breaking tycoons who circumvent regulations to grab control of other companies

China will push forward with deleveraging, lowering debt ratios among state-owned enterprises is the most pressing issue

China to strictly control new local government debt & strengthen oversight of internet financing