There are some major potential risks in China's financial sector and China should tighten its supervision of all financial activities, media reports said on Thursday, citing an article by an official from China's top disciplinary watchdog.
Xu Jia'ai, head of the disciplinary inspection unit at China's central bank and a senior inspector with the Central Commission for Discipline Inspection, said some regulators have covered up illegal financial activities. Such wrongdoings have caused significant losses across the country.
In order to solve this problem, the government should resolutely crack down on illegal financial activities, prevent risks in major financial areas and strengthen supervision of weak links, Xu said.
Xu also noted that it is more important to fight risks from the root, which means to continuously strengthen Party discipline, to remove financial risks radically and to supervise financial activities with no exception.