China issues guideline to boost oversight of finance, accounting

China has released a guideline to improve the oversight of finance and accounting activities in the country.

The guideline was jointly released by the general offices of the Communist Party of China Central Committee and the State Council.

It said that oversight of finance and accounting has played an important role in standardizing financial and economic order and promoting sound economic and social development, but there are still problems that need to be addressed, involving the supervision system, the operation mechanism, laws and disciplines.

The guideline said a finance and accounting oversight system will be established by 2025, with the primary responsibilities shouldered by finance departments and other responsibilities undertaken by related departments. Meanwhile, internal supervision will be conducted within all units, practice supervision will be done by relevant intermediary institutions and self-discipline supervision will be the responsibility of trade associations.

An operation mechanism will be basically established by 2025, with horizontal coordination between various supervisory bodies, vertical linkage between the central and local governments, and coordination between finance and accounting oversight and other kinds of oversight, it said.