China’s Communist Party committees will pressure financial institutions

China’s Communist Party committees will pressure financial institutions

China's listed regional as well as mid-tier financial institutions are going to face extra pressure to tame risky deeds as a result of the formal establishment of the country’s Communist Party Committees at bankers and also lenders.

The country’s forty listed financial institutions have uncovered a series of tweaks to their articles of association for the purpose of adding the committees, and with up to 26 coming up with announcements after the start of 2018.

It has been already noted that the financial institutions would be instructed before corporate strategy is finally agreed on.

Tighter party discipline will undoubtedly reinforce the financial clampdown, boosting personal accountability of financial managers, as some market experts pointed out.

In their proposals, a great number of financial institutions stipulated the organization of in-house discipline inspection committees – watchdogs responsible for supervising the conduct as well as punishment of the country’s communists.

As a matter of fact, under Xi, this Asian country has been revitalizing the party's role in the country’s institutions as well as society.

In April, China Construction Bank Corp's discipline inspection committee uncovered an initiative to have corrupt credit practices terminated, paying much attention to loan and risk management, branch business operations as well as internal compliance.

The head of discipline inspection at China's major financial institution, Xu Jia'ai warned this year that a lack of tough party governance had worsened prospects in the financial system, pointing to poor supervision as well as suspicious fundraising.

Meanwhile, the China Banking and Insurance Regulatory Commission has urged the country’s banks to take greater responsibility for guarantees, investments and also loans.

The previous month, officials from the regulator urged bankers at a gathering in Beijing to strongly fight market chaos and also crack down on illegal deeds.  The banks breaking the law were expected to undergo strict penalties.



Markets Assess US-China meeting
Markets Assess US-China meeting

Hong Kong’s HK 50 index rose and the Chinese yuan edged up as traders assess the outcome of the first virtual meeting between US President Joe Biden and Chinese leader Xi Jinping.

Latest news

Deposit with your local payment systems

Be on top of your game

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera