Government watchdogs hope to improve the legal framework of China’s capital markets and reduce state intervention in 2019, according to early reports from the annual Central Economic Work Conference.
One official source told Bloomberg that attendees reached a consensus on the reforms and stressed a greater role of the Financial Stability and Development Committee (FSDC).
China has been testing different means of attracting foreign investors to its onshore markets, which have had a woeful 12 months. A better legal framework, closer in line with international standards, and less government meddling would give confidence to those investing from overseas.
China’s central bank also issued a statement on Thursday at a different meeting held by state regulators, suggesting a heightened urgency to push through reform.
“Central authorities have made clear that China must build a market-oriented, rules-based capital market, and that financial departments must speed up their work,” said a statement from the meeting. “Reform will focus on improving the quality of listed firms, strengthening their governance and making the delisting process more strict.”