China to merge regulators, create new ministries: parliament document

BEIJING (Reuters) – China said it will merge its banking and insurance regulators and create a new agricultural and rural village ministry, a parliament document released on Tuesday showed, among a number of proposed changes in the biggest ministry shake-up in years.

China will also transfer some of the banking and insurance regulators’ roles to the central bank, the document showed, in a long-awaited move to streamline and tighten oversight of the financial system in the world’s second-biggest economy.

Since the beginning of last year, Beijing has cracked down on leverage and risky market practices, with China’s financial regulators releasing a flurry of new rules in an attempt to rein in risks.

China is restructuring the responsibilities, roles and powers of its state institutions to make them more efficient. President Xi Jinping’s top economic adviser, Liu He, said that such reform would be profound.

The government will also create four new ministries: agricultural and rural village; natural resources; ecological and environmental; and emergency management.

The ministry shake-up also includes the creation of a new immigration management bureau and the restructuring of the national intellectual property rights bureau.

China has also proposed forming a national markets supervision management bureau.

The securities regulator was not mentioned in the proposed changes.

The proposed changes outlined in the document are expected to be formally approved by parliament on Saturday.

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