China Unleashes New Steps to Control Financial Risks, Outflows
- Measures target banking system risks, capital outflows
- China limits purchases of insurance products overseas
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China’s government is stepping up efforts to ward off a potential financial crisis, warning bank executives that their jobs are on the line unless they control risks and putting restrictions on an increasingly popular way of evading capital controls.
The moves come after China’s slowest economic growth in a quarter century fueled concerns that bad debts will cripple the banking system and speculative pressure on the yuan mounted. They add to evidence that President Xi Jinping’s government is moving with increased urgency to rein in financial-system risks.