China needs a super-watchdog

China needs an overarching financial regulator to help maintain financial stability as the country opens up its capital account.

China needs an overarching financial regulator to help maintain financial stability as the world’s second-largest economy opens up its capital account to the world.

Roller-coaster markets, bungled attempts to prop up prices, and mixed policy messages illustrate why a unified body is urgently needed.

A super-regulator could be created by merging the country’s three main financial regulators for securities markets, banking and insurance under the control of the central bank. This would provide integrated regulation and communicate the rules clearly to market participants.

“It would certainly be more efficient, having to deal with just one regulator,” Christopher Lee, the chief ratings’ officer for Greater...

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