To Rein in China’s Banks, Xi Uses Familiar Playbook

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To a man with a hammer, a renowned psychologist once posited, everything looks like a nail.For most of his decade in power, Xi Jinping, China’s leader, has usually arrived at the same conclusion for how best to deal with the country’s issues: get the Communist Party more involved. And now, as China is confronting an economy lacking the dynamism of the past and teetering from a real estate sector in crisis and local governments overrun with debt, Mr. Xi is again wielding his hammer.At the annual gathering of China’s national legislature, which concluded on Monday, Mr. Xi introduced a series of sweeping changes to the country’s regulatory framework, allowing the party’s top leaders to assert more direct control over financial policy and bank regulation. Appointments for allies of Mr. Xi to key regulatory roles and additional shake-ups are expected in the coming days, further cementing the party’s oversight of t …

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