The State Council has hinted that it will soften its no-tolerance policy toward financial risks as China faces an ever-growing set of economic challenges in the second half of the year.
The council’s Financial Stability and Development Committee (FSDC) met earlier this week to discuss and approve a three-year financial risk plan, in which it was stated that liquidity will remain “sufficient” and state planners will “properly handle the pace of regulatory work”.
Ma Jun, former chief economic researcher at China’s central bank and FSDC member, notably added that China will attempt to avoid a “one-size-fits-all” approach to the nation’s debt problem, according to Bloomberg.
The FSDC is headed by Premier Li Keqiang with Yi Gang, governor of the People’s Bank of China, as deputy. It also holds representatives from China’s finance ministry and National Development and Reform Commission.