East China’s Jiangsu province has the ability to forestall systemic financial risks, with enough tools put aside to deal with uncertainties in the global environment or new risks at home. The remarks were made by Governor Wu Zhenglong during his inspection tour to the Nanjing Branch of the People’s Bank of China on Monday.
Wu Zhenglong stressed that it is necessary to adhere to the guidance of Xi Jinping's socialism with Chinese characteristics in the new era, insist on the general work tone of steady progress, enhance the sense of urgency, highlight problem-oriented approaches, launch policy support scientifically and precisely, prioritize risk prevention, strengthen supervision and treat both the symptoms and the root causes so as to win the fight to prevent and resolve major risks and strive to build a better financial system, better meet the diversified financial needs of the people and the real economy, and provide strong financial support for high-quality development.
The governor pointed out that finance lays the cornerstone of the modern economy, and forestalling and defusing financial risks is a major barrier that must be achieved so as to achieve high-quality development.
He said greater efforts need to be made to thoroughly study and implement General Secretary Xi Jinping's spirit of a series of important speeches on forestalling financial risks, understand the extreme importance and urgency of forestalling and defusing financial risks, implement the central government's feedback on the rectification of financial risk prevention and rectification, and enhance political stance so as to firmly hold the bottom line without systemic financial risks.
Wu Zhenglong emphasized that it is necessary to focus on key areas, actively and steadily resolve risks in government debt and real estate, and avoid secondary risks in the disposal process. It is necessary to improve the local financial supervision and risk prevention and resolution mechanisms, especially the establishment of a rapid response coordination mechanism, he said.
To promote the harmonious and coordinated development of the interaction between finance and the real economy, governments at all levels and relevant provincial departments must strictly implement their responsibilities, strengthen assessment and supervision, promote financial security, enhance stable and healthy development, and enable finance to better escort the new Jiangsu construction, the governor said.
To forestall and defuse major risks has been listed as one of the country's "three tough battles" for the next three years, along with targeted poverty alleviation, and pollution prevention and control.
The Chinese government pays high attention to the management of government debt and is firm in cracking down on irregularities in financing activities.
With a new budget law and a number of follow-up measures in place, the government has established a closed-loop system that covers quota management, budget management, risk early warning, emergency response and daily oversight.
Nearly 100 people had been held responsible for misconduct and irregularities related to local government debt in 2017 as the country strengthens efforts to defuse financial risks.
(Source: ourjiangsu.com)
