China's central bank, banking and insurance regulator establish countercyclical capital buffer mechanism

HONG KONG: China's central bank and the country's banking and insurance regulator said they would establish a countercyclical capital buffer mechanism on Wednesday.

They will regularly assess and adjust countercyclical capital buffer requirements to prevent systemic financial risks, according to a statement posted on the People's Bank of China (PBOC) website.

The mechanism will be effective from Wednesday, the statement said.