A KEY financial regulator said China is confident, well-positioned and capable of coping with various financial risks and challenges, thanks to its sound long-term fundamentals providing a solid foundation.

Li Yunze, head of the National Financial Regulatory Administration (NFRA), said in an interview with Xinhua that the strong resilience, huge potential, robust vitality and sound fundamentals of China’s economy remain unchanged, providing the greatest confidence, guarantee and backstop for preventing and defusing financial risks.

China should make a greater effort in financial risk management but the policies need to be tailored, avoiding a one-size-fits-all approach, Li said.

Provinces have to devise their own policies on how to handle risks, according to the report. On risk management, there’ll be “one province, one policy,” Li was cited as saying in the article, which was published yesterday in a question-and-answer format.

The NFRA, the regulator overseeing all aspects of China’s US$57 trillion financial sector, along with other departments will focus on dealing with “key people” and “key behaviors” that are causing major financial risks and undermining market order, including illegal third-party intermediaries, he said.

Li said the NFRA will also take advantage of current favorable opportunities to increase the promotion of risk disposal.

It will promote small and midsize banking institutions to optimize their structure, improve quality and increase efficiency, Li said. (SD-Agencies)