Xi Jinping ramps up financial risk rhetoric

Chinese President Xi Jinping ramped up the rhetoric about financial risks on Tuesday, making a rare repeated call for the authorities to keep a lid on the threats. Xi told a meeting of the Communist Party’s Politburo that China faced challenges overhauling its economy but the authorities should ensure there were no systemic financial risks, Xinhua reported, citing a statement. The government should attach great importance to preventing and controlling financial risks and improving coordination between the various regulatory authorities, the statement said. According to the South China Morning Post, it is rare for “financial risks” to be mentioned twice in a single official document from such kinds of meetings, but the warnings are in line with the party’s risk aversion agenda ahead of a major reshuffle later this year. The statement added that the government should step up punishment of illegal activities in the industry.