There are some major potential risks in China's financial sector, and China should eliminate all risks rooted in its financial supervision system, thus achieving overall supervision of financial activities, read an article by Xu Jiaai, head of the disciplinary inspection unit at China's central bank, who was accredited by the Central Discipline Inspection Commission, China's top disciplinary watchdog.
The major potential risks cited in Xu's article include some regulators covering up illegal financial activities and financial chaos such as illegal fundraising activities, which have caused big losses for Chinese people across the country, according to an article posted on the commission's official website on Tuesday.
In order to solve all these problems, the government should resolutely crack down on illegal financial activities, prevent risks in major financial areas and strengthen supervision of weak links, Xu said.
Xu also noted that it is more important to fight risks from the root, which means to continuously strengthen Party discipline, to remove financial risks radically and to supervise financial activities with no exception.
Recently, Chinese financial regulators have been intensifying their efforts in fighting illegal activities in the market, for instance, the Chengdu branch of the Shanghai Development Bank was fined 461.75 million yuan ($72.16 million) due to illegally providing and covering up non-performing loans, according to a statement released on January 19.
