Preventing and dissolving financial risks, notably averting systemic financial risks, is high on the agenda of financial work, the Xinhua report said on Tuesday, shining attention on the legislation progress that intends to elevate some practices that have over recent years proved effective in containing financial risks into a long-term mechanism in legal terms.

The general idea of the legislation is to adhere to financial work and to balance development and security. Based on a problem-oriented and systematic approach, it strives to improve institutional arrangements for the whole process of solving financial risks, and makes clear of relevant responsibilities and measures.

In the meantime, it adheres to the market-oriented and law-based approach, and makes clear the risk disposal responsibilities of relevant parties, guarding against both systemic risk and moral hazard, according to Xinhua.

The draft, which consists of six chapters and 49 articles, mainly involves content of establishing a working mechanism for financial stability, strengthening the mechanism for preventing risks and improving the mechanism for defusing risks.

In addition, the draft also makes clear that the coordination mechanism can take accountability measures against relevant departments and localities, and stipulates corresponding legal liabilities for the illegal acts of financial institutions and relevant subjects, so as to strengthen the accountability mechanism and maintain the order of the financial market.

In April, the People's Bank of China (PBC), the country's central bank, unveiled the draft financial stability legislation, including the creation of a financial stability guarantee fund, laying the legal groundwork for a holistic, sector-spanning and cross-departmental approach to preventing systemic financial risks.

In recent years, the country has created a multi-dimensional financial legal system that comprises laws related to the central bank, commercial banks, securities and insurance. But there's still a lack of holistic design and comprehensive arrangement spanning sectors and government departments when it comes to financial stability, as relevant terms are distributed loosely among multiple laws and regulations, the PBC said in a statement on its website elaborating on the law's drafting.

Financial risks, known for their abruptness, spillovers, complexities and relatedness, would have destructive implications for the economy and social development if they become contagious, read the statement.

Major developed economies have generally moved to enact laws specifically designed to build a unified and coordinated framework for financial stability, the statement continued, describing the legislation as imperative for the country's push to firmly prevent systemic financial risks.

The PBC was seeking public comment on the draft through May 6.

At the 38th session that convened Tuesday through Friday, lawmakers were also scheduled to deliberate a draft amendment to the Legislation Law, a draft revision to the Company Law, among other draft revisions and legislation efforts, Xinhua reported.

Several proposals on draft laws, revisions and amendments will also be deliberated.