China to set up new financial regulator

China plans to establish a new agency that will serve as a coordinator of financial supervision, Reuters reported, citing a State Council document on Tuesday. The new body will be under central bank’s control with the roles of existing industry watchdogs still unchanged. The cabinet said in its approval of the proposal from the People’s Bank of China (PBOC) that the new office will coordinate China’s monetary policies and financial regulations, maintain financial stability and reduce systemic risks. This move is against market expectations, which have long speculated that China would create a super-agency for financial regulation to cut bureaucratic infighting and quicken reforms.