Premier Li Qiang has been confirmed as head of the freshly minted Central Financial Commission (CFC), a Communist Party body overseeing China’s 400 trillion yuan (US$58 trillion) holdings in banking, insurance and securities assets, state media revealed on Monday.
The country’s No 2 political figure, along with other high-profile officials, held a meeting that day to discuss the implementation of recommendations made at October’s twice-a-decade central financial work conference and how specific responsibilities would be divided.
At the meeting, Li was reported as saying the commission would prioritise risk prevention and buttress “weak links” in the economy.
Who are the other heavyweights on the Central Financial Commission?
He Lifeng, a member of the party’s Politburo and a vice-premier in charge of finance, trade and economic matters, is director of the commission’s general office and will run its day-to-day affairs.
Wang Jiang, former party chief of the state-owned financial conglomerate China Everbright Group, has been named executive deputy director of the office.
Former finance vice-minister Xia Xiande is another deputy director.
What does the Central Financial Commission do?
The commission is under the direct supervision of the Central Committee, a top decision-making body. It is one of several organs established as part of a March restructuring that bolstered the party’s direct control over strategic sectors.
It has a mandate to manage financial planning, eliminate and prevent systemic risks, provide funding for the real economy and guide the overseas use of the yuan, among other tasks.
The sweeping overhaul of party and state functions that led to the commission’s creation also included a redefinition of the role of the People’s Bank of China, the central bank. More than 100 officials have been transferred from the central bank, securities and banking regulators, finance ministry and the National Development and Reform Commission, the country’s chief economic planner, the Post reported last month.
The CFC commenced operations in late September as China’s property sector – a major economic pillar – and local governments continue to be heavily encumbered by debt, putting the stability and recovery of the world’s second-largest economy on the line.
How does it relate to other economic organs?
Both Li and He sit on the Central Financial and Economic Affairs Commission (CFEAC), a powerful party organisation headed by President Xi Jinping with a comprehensive portfolio covering all major economic policies. The CFC will implement finance-related decisions and directives from the top leadership.
Li is a deputy head of the CFEAC, while He was also confirmed last month as the director of its general office, a sign that He will be coordinating work and communication between the CFEAC and CFC.
He Lifeng wears another hat as party chief of the Central Financial Work Commission, a newly chartered organisation overseeing party ideology and discipline in China’s sprawling financial sector.
It shares an office compound with the CFC on Financial Street in downtown Beijing.
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