China to tighten banking and insurance control

China to merge banking insurance regulators in massive overhaul

China to merge banking insurance regulators in massive overhaul

The securities regulator-the China Securities Regulatory Commission (CSRC)-will remain a separate entity, however.

Local branches of state and local taxation will be merged, the audit office will expand its reach, and a new market supervision bureau will be created, according to a document presented at the National People's Congress, the annual parliamentary session.

The two regulators will hand off duties such as proposing laws to the People's Bank of China in a sign that the central bank is beefing up its regulatory role.

China is among the global economies seen as most vulnerable to a banking crisis, the Bank for International Settlements (BIS) said at the weekend, though Beijing has maintained that debt risks are under control.

Financial regulators have cracked down on major companies - even taking over Anbang Insurance this year - to get a handle on the building risk and unwieldy debt that some analysts worry pose a serious threat to China's financial stability.

"Deepening the reform of state institutions is an inevitable requirement for strengthening the long-term governance of the party", said Liu He, President Xi Jinping's top economic adviser.

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The latest cabinet shuffle shows the government's battle continues.

The proposed commission will be responsible for formulating national health policies, coordinating and advancing medical and healthcare reform, establishing a national basic medicine system, supervising and administering public health, medicare and health emergencies, as well as family planning services, the document said.

The new agency will be formed as part of a broad reshuffle of government departments that the country's largely rubber-stamp parliament will formally approve on Saturday.

The draft also includes a new immigration bureau and changes to the tax system. Once this happens, the Cabinet will consist of 26 Ministries and Committees.

State Councilor Wang Yong briefed the lawmakers on the plan.

Many brokerages also structure wealth management products as a channel for hidden bank lending, in addition to the more traditional business of facilitating share trades and investment banking services.

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