The new Chairman of China Banking Regulatory Commission, Guo Shuqing [Photo: CGTN]

The new Chairman of China Banking Regulatory Commission, Guo Shuqing, said that China's systematic risks in the banking sector and financial industry are controllable, and promised to properly deal with debt-to-equity swaps to tackle high corporate debt.

Guo made the remarks during his first press conference on Thursday after replacing 65-year-old Shang Fulin earlier this week as the head of the official body.

"Corporate leverage should be reduced. Now debt-to-equity swaps have used more than 40 billion yuan (5.81 billion US dollars), and we are going to introduce more policy support and risk monitoring to push for more new results of debt-to-equity swaps," he said.

Guo said that China plans to improve transparency, shorten companies' financing chain and lower their financing costs.

Vice Chairman Wang Zhaoxing also said that the banking regulatory body encourages banking assets and debts to be diversified, in an attempt not to concentrate the risks.

"Credit and loans should be ensured to enter the real economy," he said.

　　Reporters await for the press conference on the banking sector in Beijing on Thursday. [Photo: SCIO]

The former governor of Shandong Province succeeded Shang Fulin after the latter reached retirement age.

His appointment was highly anticipated as he is believed to have what it takes to lead China's banking sector into better times, considering his previous occupations as director of the State Administration of Foreign Exchange. He was once vice governor of the People's Bank of China, chairman of China Construction Bank, and chairman of China Securities Regulatory Commission.

Guo led a host of market-oriented reforms during his tenure as chairman of China Securities Regulatory Commission, including introducing a new policy every week on average in 2012. As the governor of Shangdong Province, he also deepened reforms to improve fiscal transparency, and axed government approvals for certain projects to facilitate business.