New financial regulator disclosed its immediate work priorities

On May 31, Zhang Zhongning, deputy director of the new financial regulator (NFRA), disclosed the agency’s immediate work priorities at a press conference hosted by the Shanghai municipal government.

Some context: In March, the central government announced it would create the NFRA, a beefed-up version of the banking and insurance regulator (CBIRC).

• The agency has kept a low profile since its inauguration on May 19.
• The NFRA’s new head, Li Yunze, has so far only talked about financial regulation in broad terms.

Zhang said that the NFRA:

• Intends to issue detailed implementation rules for establishing an international reinsurance trading market in Shanghai (Caixin)
• Wants to improve financial sector support for elderly care services (The Paper)

The NFRA has inherited the duties of its predecessor, the CBIRC.

• However, Zhang’s comments could be our first insight into what additional priorities the NFRA is focused on.

Building a reinsurance market is part of Shanghai’s ambition to become an international financial center, which is an important step toward RMB internationalization.

• Additionally, harnessing the financial sector to meet the needs of the older people is potentially a key part of managing a rapidly aging population.