The Establishment of the State Administration of Financial Supervision and Administration

Financial Reforms in China: A New Era for International Banking and Regulation

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 which entails 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...