Current Challenges Facing Chinese Financial Supervision and Methods of Handling These Challenges

Abstract

This paper presents the main challenges currently facing China’s financial supervisory authority and the supervisory response to these challenges, focusing on the shadow banking system and Digital Finance. The author seeks to find out what reforms were introduced and what tools were applied in the realm of supervision in the recent period, what results they have yielded and whether any further reform is necessary to improve the efficiency of Chinese financial supervision, and if so, in what area(s). This paper focuses on the activities and toolset of the CBRC, the main financial supervisory body, and also covers the relevant tasks discharged by the PBC.