China to set up new financial watchdog as part of reforms

New body will replace banking and insurance regulators after concerns over creaking property market

China will set up a new financial watchdog to replace its banking and insurance regulators as part of an overhaul of state institutions after concern about exposure to its creaking property market.

The new body, which does not have an official name yet, would bring oversight of China's financial system under direct control of the State Council, the top government body. There are also reports that the president, Xi Jinping, who will in all likelihood be granted a third presidential term on Friday, will revive the Central Financial Work Commission, an organisation that would supervise the financial system on behalf of the Chinese Communist party, although this has yet to be announced publicly.