China reveals 2014 financial reform priorities

China's four major financial authorities have announced their priorities for 2014.

The People's Bank of China (PBOC). the central bank, will continue to expand the cross-border use of the Chinese currency, the Renminbi, this year.

At the same time, it will stick to prudent monetary policy and maintain steady credit growth, improve the multi-tier capital market, and engage further in international financial regulation policy-making.

The China Banking Regulatory Commission (CBRC) will pilot three to five private banks that will bear their own risk, opening up the banking sector to domestic and foreign private capital.

The banking industry watchdog will gradually reduce the threshold for foreign banks to enter the banking sector and ease their RMB operation requirements.

The CBRC will keep a close eye on major housing developers, and reduce the risk of default through weak links in the construction industry's money chain.

Also on the banking regulator's radar are restructuring and technological upgrades in overcapacity industries, liquidating their assets and reducing the risk of default.

In pursuit of a more efficient market, the China Securities Regulatory Commission (CSRC) will switch IPOs from the current approval system to one based on registration.

Under the new system, the timing of IPOs and how shares are issued will be determined by the market, as long as issuers disclose all relevant information as required.

In order to streamline approval procedures, the CSRC will also abolish approval requirements on 21 items over the next three years starting from 2014.

The China Insurance Regulatory Commission (CIRC) is considering catastrophe insurance for those hit by disasters.

The CIRC will join with the finance and other ministries to work on implementation plans for catastrophe insurance this year.

The commission also intends to set up food liability insurance in 2014, given the importance of food safety in China.