Zhang Xiaojin, director of the Fourth Prosecution Bureau in charge of economic crimes, said efforts will be made to “provide strong rule of law guarantees to serve and protect quality financial development.”
In an interview published a week before the Lunar New Year, which starts on Saturday, he told SPP affiliate media that prosecutors would also target crimes that undermine the order of capital markets and the profits of listed companies.
Zhang said the crackdown will “provide strong support to accelerate the construction of a standardized, transparent, open, dynamic and resilient capital market.”
Xi urges loyalty from courts and law enforcement to 'mitigate' social and economic risks
Xi urges loyalty from courts and law enforcement to 'mitigate' social and economic risks
He said crimes in the securities and futures sector “severely undermine the foundations of capital market operations, violate the legitimate rights and interests of investors, and endanger economic and financial security.”
Financial fraud, misappropriation of listed company assets, insider trading and market manipulation are all on prosecutors' target list, Zhang said.
Last year, the Communist Party became the country's top financial regulator with the creation of the Central Financial Commission, as part of the Chinese government's emphasis on the need for stronger financial sector oversight.
President Xi Jinping also stressed the importance of preventing systemic financial risks at a high-level meeting held at the Central Party School in Beijing last month attended by dozens of provincial leaders.
“Financial regulations must have teeth,'' President Xi said, “corruption must be resolutely punished in the process of risk management, and moral hazard must be strictly prevented,'' and he called for further efforts against corruption. promised.
At the Central Fiscal Work Conference (a twice-a-decade policy-making meeting presided over by the president) in late October, President Xi said that preventing and resolving financial risks must be an “eternal theme” for the Chinese government. Ta.
Who will China's new financial watchdog do, what will it do, and how will it do it?
Who will China's new financial watchdog do, what will it do, and how will it do it?
He said the country needs to “comprehensively strengthen financial supervision and bring all financial activities under control in accordance with the law.”
In December, the Supreme People's Procuratorate issued guidelines specifying its obligations on tackling and preventing financial crimes.
China is also grappling with a slump in its stock market, with Premier Li Qiang convening a cabinet meeting last month to discuss ways to revive sentiment, attract long-term capital and bottom out the stock market slide.
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A fading fairyland dream: How China Evergrande rose and fell
A fading fairyland dream: How China Evergrande rose and fell
According to a statement released after the meeting, the cabinet agreed that “more vigorous and effective measures should be taken to stabilize markets and confidence.”
Vice Premier He Lifeng last week called listed companies an important “microeconomic foundation” and urged party leaders from all regions to support them during a national conference call.
Confidence, capital market stability and economic development must be promoted, he said, underscoring the importance of quality development in the economy.
