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)