Establishment of a fund for financial stability underway

China is pushing forward the establishment of a fund for ensuring financial stability as soon as possible. This fund will set aside money for the handling of major risks that have hidden systemic dangers, said a regulatory official on Friday.

"The CBIRC will cooperate with the People's Bank of China to hurry up and carry out studies on the improvement of relevant laws, regulations and institutional arrangements in order to push forward the establishment of a fund for ensuring financial stability as soon as possible," said Liu Zhongrui, deputy director-general of the Statistics, IT & Risk Surveillance Department of the China Banking and Insurance Regulatory Commission.

"As regulators, we have paid close attention to the unstable internal and external environment and the rising uncertainties. We are still facing fairly huge economic and financial challenges. China has entered the phase of normalized disposal of financial risks and we must save (financially) for a rainy day," said Liu at a news conference held by the State Council Information Office.

Similar to deposit insurance and security funds for some industries in the financial sector, the fund for ensuring financial stability is an essential part of China's financial safety net, he said.

"What's taken from the market is used for the market. China will implement differential charges for different market entities in different sectors to create a balance among the risks, returns and responsibilities, and to avoid damage to national and taxpayer interests," he said.

jiangxueqing@chinadaily.com.cn