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State Council committee urges support for economic recovery

Chen Jia
Updated: May 05,2020 02:03 PM

China's Cabinet-level financial regulatory body is urging support for the country's economic recovery, accelerating the reform of small and medium-sized commercial banks, and cracking down on financial fraud in the capital market.

The meeting of the Financial Stability and Development Committee under the State Council, presided over by Vice-Premier Liu He, was held on May 4. Liu also is head of the committee.

It urged improving macroeconomic plans, creating effective demand, optimizing the supply structure, and keeping liquidity at a reasonably ample level, according to a statement issued after the meeting.

"Amid the global financial market turmoil, China's stock, bond, and foreign exchange markets have remained stable, with strong resilience," the statement said.

Since the novel coronavirus outbreak, the committee urged targeted measures to offset uncertainties of the epidemic shocks and economic fallout, and continually strengthened financial supports on the real economy.

The government has made reform and capital support plans for small and medium commercial banks, encouraging these lenders to better serve smaller businesses and promote internal governance, according to the meeting statement.

It said the government has set a "zero tolerance" tone for illegal activities in the capital market, to crack down on financial fraud, illegal trades, and market manipulation. Listed companies, intermediaries, and individuals that involved in illegal activities will receive punishment.

The financial regulatory body also warned of risks from the global commodity market as prices fluctuated recently. It stressed the control of spillover effects, to solve problems based on business contracts, and protect the interests of investors.