Coordination key to improving supervision

"Regulators should communicate with each other fully before carrying out important and relevant policies," she said.

With the rapid development of the Internet and e-commerce, relations between the Internet and finance sectors have become increasingly close. They include Internet finance products such as peer-to-peer lending and an online investment fund developed by China's largest third-party payment platform Alipay and Tianhong Asset Management Co.

Hong Hao, managing director and chief strategist at BOCOM International Holdings Co Ltd, told China Daily the coordination mechanism is good for risk control and the healthy development of Chinese economic and financial development.

Hong said Chinese financial regulations are relatively tight and the interest rate has not been fully market-oriented, adding the market welcomes a coordinated mechanism that can make financial regulation more effective but looser.

Hong said the overcapacity problem, which has hidden financial risks, can be solved through new forms of selling.

"Setting up a more perfect deposit policy is also a way to prevent the development of shadow banking," said Hong. Shadow banking is a collection of non-bank financial intermediaries.

An important reason for carrying out a coordination mechanism at the moment is that China is entering an era of pan-asset management, said Lian Ping, chief economist of the Bank of Communications.

Lian said the coordination mechanism is suitable for China's current stage of financial management and reform. The reform of financial regulation cannot be made in one step.