The Jiangxi Regulatory Bureau of China's Ministry of Finance released an article on its official website detailing how it implements Xi Jinping Economic Thought in local fiscal and financial supervision, emphasizing political foundation, risk prevention, collaborative efforts, and pragmatic work style throughout the regulatory process.
The bureau is responsible for the accounting supervision of central financial enterprises and the management of state-owned financial capital property rights. It must fully grasp core requirements such as "people-centered development" and "coordinating development and security" to ensure correct direction. In practice, the bureau will strengthen oversight of key areas such as non-performing asset disposal, compensation management, and financial accounting of central financial enterprises to prevent firms from concealing real risks through financial whitewashing. It will issue regulatory opinions on violations and track rectification to safeguard state-owned financial capital interests.
On risk prevention, the article stresses maintaining high pressure on local government illegal borrowing, illegal guarantees, and disguised financing through platform companies, following the principle of "discover, verify, and report each case." It will closely monitor financial enterprises' investment and financing to local governments and state-owned enterprises, conduct penetrating supervision from both supply and demand sides of debt, and urge local authorities to properly resolve operational debt risks of financing platforms, firmly guarding against systemic risks.
The bureau will also routinely track the operations of local small and medium-sized financial institutions, focusing on abnormal fluctuations in core indicators such as capital adequacy ratio, non-performing loan ratio, and liquidity ratio. It will strengthen oversight of local use of public resources to handle financial risks, ensuring fiscal funds are used safely and efficiently to prevent risk transmission to public finance.
To enhance regulatory effectiveness, the article calls for strengthened horizontal collaboration with local offices of the People's Bank of China, the Financial Regulatory Administration, and the Securities Regulatory Commission to establish mechanisms for information sharing, clue transfer, and joint supervision. Vertically, it will boost linkages with Ministry of Finance departments to promptly report common issues and propose policy improvements. Technologically, the bureau will leverage integrated budget management systems, local government debt monitoring platforms, and other IT tools, and explore using big data and AI to cross-check financial enterprise data for more precise and timely problem detection.
The article also demands rejecting formalism, conducting in-depth frontline research on key fiscal and financial regulatory issues to produce special reports. It will implement a ledger and closed-loop management system for violations, regularly tracking rectification progress and holding accountable those failing to rectify. For typical issues, it will analyze root causes and propose institutional improvements, while summarizing and promoting effective practices.