China Cracks Down on Financial Crimes: “Strong Rule-of-Law Guarantees” for 2023
China’s Top Prosecutor Vows to Combat Financial Crimes
In a bid to strengthen supervision of transactions and prevent financial risks, China’s top prosecutor has vowed to ramp up efforts to combat financial crimes in the year ahead. Zhang Xiaojin, head of the Fourth Procuratorial Office, which handles economic crimes, pledged to provide “strong rule-of-law guarantees” to support high-quality financial development.
Focus on Offenses
The crackdown will focus on a range of offenses, including:
- Illegal fundraising
- Loan fraud
- Money laundering
- Crimes related to virtual currencies
- Cases that damage the order of the capital market and harm the interests of listed companies
Zhang warned that financial fraud, misappropriation of listed company assets, insider trading, and market manipulation seriously undermine the operation of the capital market, infringe upon investors’ rights, and threaten economic security.
Significance of the Move
The move comes as China’s financial regulatory landscape is undergoing significant changes. The Communist Party has taken on a more prominent role in financial regulation, with the establishment of the Central Financial Commission. President Xi Jinping has also emphasized the need for strengthened supervision of the sector to prevent systemic financial risks.
Xi stressed that “financial regulation must have teeth” and pledged further moves against corruption during a high-level meeting at the Central Party School last month. He also noted that preventing corruption is crucial in managing financial risks.
Key Developments
- The Supreme People’s Procuratorate has issued a guideline outlining its duties in tackling and preventing financial crimes.
- Premier Li Qiang convened a cabinet meeting to discuss ways of reviving the stock market and enticing long-term capital investment.
- Vice-Premier He Lifeng recently urged support for listed companies, stressing their critical role as a microeconomic bedrock.
Conclusion
China’s top prosecutor has vowed to provide “strong rule-of-law guarantees” to support high-quality financial development in 2023. The crackdown on financial crimes aims to prevent systemic risks and promote confidence, capital market stability, and economic development through high-quality development in the economy.