The Chinese government has announced plans to set up a new financial regulator which will consolidate oversight and close loopholes in the country.

Plans for setting up the National Financial Regulatory Administration were presented to China’s parliament at its annual meeting on Tuesday. The new body will replace the China Banking and Insurance Regulatory Commission (CBIRC) and bring state supervision of the industry under direct control of the State Council, excluding the securities sector.

The Chinese financial sector is currently overseen by the People's Bank of China (PBOC), the CBIRC, and the China Securities Regulatory Commission (CSRC). This new body would take the CBIRC's responsibilities while also undertaking some of the functions of the PBOC and CSRC.

The proposal also includes plans to set up a bureau responsible for coordinating the sharing and development of data resources.

The government will also set up a bureau responsible for coordinating the sharing and development of data resources, according to a plan submitted to parliament on Tuesday.

Chinese president Xi Jinping, who is at the start of an unprecedented third term, has put large corporate and financial institutions in his sights, with multiple companies such as Ant Group coming under increased scrutiny over what has been described as a laissez-faire approach to regulation.

This new body comes as part of wider reforms in China of the ruling Communist Party and state institutions ahead of what is expected to be the biggest government reshuffle in a decade. The National People's Congress (NPC) is also set to confirm Li Qiang as the CCP’s next premier.

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