Warnings coming out of Beijing over systemic financial risks carry echoes of 2017, when China launched a crackdown on capital flight by the country’s largest and best-connected private conglomerates. 

The government needs to “gear up for fighting a hard and enduring battle,” Wang Zhaoxing, vice-chairman of China Banking and Insurance Regulatory Commission, told reporters on Monday. He cited “complicated and grim-looking circumstances” even though risks in the banking and insurance industries had been generally under control amid the economic downturn.

In a more positive note, a press handout noted that “structural deleveraging has reached its expected target”. But Mr Wang was undeterred. “Even if the original risks are resolved, some risks may become new risks; even if previous risks in-stock are resolved, there may be new incremental risks,” he added.