The functions of the former top banking and insurance regulators of formulating important laws and regulations for the banking and insurance sectors were transferred to the People's Bank of China, China's central bank.

Guo Shuqing, former Chairman of the China Banking Regulatory Commission, was named chairman of the CBIRC and vice governor of the central bank, while former Vice Governor Yi Gang was appointed governor of the central bank.

Experts say Guo will focus on financial regulation at provincial and lower levels of the government and supervision of financial products. Yi, for his part, will concentrate on monetary policies and international exchanges.

Yi pushed forward the transformation of China's monetary policy from administrative- to market-based and Guo launched a series of reform policies while he was chairman of the China Securities Regulatory Commission, governor of Shandong Province and chairman of the China Banking Regulatory Commission.

Their top priorities will be to promote the reform and opening up of China's financial industry, prevent and dissolve systemic financial risks, and maintain the stability of the industry.

(This is an edited excerpt of an article published in China Newsweek on April 16)