The State Council, China's cabinet, opened Friday its third
national financial work conference which will formulate plans
crucial to the country's financial system over the coming few
years.
Analysts said the meeting comes at a time when China is facing
some problems: a record high trade surplus of US$177.47 billion in
2006, huge foreign exchange reserves that exceed US$1 trillion,
stagnant domestic consumption and the possibility of a slowdown in
the world economy.
The previous two meetings, held in 1997 and 2002, led to
significant policy changes.
The first national financial work conference was held in 1997,
the year a financial crisis swept Southeast Asia. China reacted by
adopting proactive fiscal and financial policies, setting up the
Insurance Regulatory Commission and instituting reforms of the "Big
Four" banks: the Bank of China, the China Construction Bank, the
Industrial and Commercial Bank of China and the Agricultural Bank
of China.
The second national financial work conference, held in 2002, saw
the establishment of the Banking Regulatory Commission, and the
adoption of "prudent" fiscal and financial policies.
(Xinhua News Agency January 19, 2007)