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State Council Action Aimed at Safeguarding Markets
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State Council Tuesday promulgated the Chinese version of the regulation about shutting down financial organizations. According to the 38-article regulation, in the case of any illegal or poor business performance that poses serious threat to the order of the financial market and the interests of the public, a financial organization will be shut down. Premier Zhu Rongji signed a decree to this effect on November 23.

The regulation is set up to strengthen supervision on the financial system, safeguard the order of the financial market and protect state and people's interests.

According to the regulation which comprises 38 articles, in the case of any illegal or poor business performance that poses serious threat to the order of the financial market and the interests of the public, a financial organization will be shut down.

The People's Bank of China is responsible for implementation of the regulation. The central bank will set up a special team to handle clearance affairs of the closed financial organizations. Central bank officials found to be derelict in their duty relating to approval of and supervision on such financial organizations will be punished according to laws and regulations.

( December 5, 2001)

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