Bloomberg reports, citing an article published by China Finance
The article refers to remarks by PBOC deputy governor, Liu Guiping, who is said to have suggested new laws to better coordinate policies in order to maintain financial stability and prevent risks from bubbling up in China.
The proposal is said to make clear that the Financial Stability Development Committee is the one in charge of planning and organising work related to risk prevention.
Under the proposal, all departments and local governments would have to carry out the FSDC's high-level directions, with everyone's responsibilities more clearly defined.
Just take note of these small changes that China may be making moving forward, as this is part of their recent push to wean the market off stimulus measures.
In doing so, it will see an increase in the debt pile and that poses financial risks to the system. Hence, these proposals are starting to be put forward to deal with that.
This latest initiative by China to take some stimulus off the taps has already caused a stir in the stock market over the past few weeks, and one can surely expect more turbulence to follow as policymakers continue to try and "normalise" economic conditions.
