China Vows to Crack Down on Financial Crimes Amid Economic Risks
Intensifying Efforts to Combat Financial Crimes
As China’s economy faces potential risks, a top prosecutor at the Supreme People’s Procuratorate has pledged to intensify efforts to combat financial crimes in the coming year. The crackdown is aimed at providing “strong rule-of-law guarantees” to support China’s high-quality financial development.
Targeting Financial Offenses
Prosecutors will target a range of offenses including:
- Illegal Fundraising: Activities that involve soliciting investments through false or misleading means.
- Loan Fraud: Deceptive practices involving loans, such as misrepresenting loan terms or failing to disclose risks.
- Money Laundering: Hiding the source of illicit funds or using them to finance other crimes.
- Virtual Currency-Related Crimes: Activities that involve cryptocurrencies, such as money laundering or illegal fundraising.
Protecting Investors and the Capital Market
The crackdown is also aimed at preventing activities that damage the order of the capital market and harm the interests of listed companies. Zhang Xiaojin emphasized that financial crimes undermine the basis for the operation of the capital market and infringe upon the legitimate rights and interests of investors.
China’s Financial Regulatory Reforms
China’s Communist Party became the country’s top financial regulator last year with the establishment of the Central Financial Commission. President Xi Jinping has stressed the importance of preventing systemic financial risks, saying “financial regulation must have teeth” and vowing further moves against corruption.
Challenges Ahead
China is also facing challenges from an ailing stock market, with Premier Li Qiang convening a cabinet meeting last month to discuss ways of reviving sentiment. Vice-Premier He Lifeng has urged officials to support listed firms, calling them a critical “microeconomic bedrock” and emphasizing the importance of promoting confidence, capital market stability, and economic development through high-quality development in the economy.
Conclusion
As China’s economy faces potential risks, the crackdown on financial crimes is aimed at providing strong rule-of-law guarantees to support high-quality financial development. By targeting a range of offenses and protecting investors and the capital market, prosecutors hope to strengthen supervision of transactions and prevent potential risks.