China is trying to get a grip on its sprawling financial agencies

The Chinese government has set up a new unit to get a hold on the country's sprawling financial and economic policymaking agencies.

According to reports in the FT and Bloomberg, China's cabinet office created a department to coordinate policy decisions affecting markets and the economy.

Li Zhenjiang, vice-president of the Agricultural Bank of China was hired to lead the unit's daily operations, according to Bloomberg. He's tasked with coordinating market regulators, gathering financial data and making sure policy-decisions are coordinated between different agencies.

The move comes as credibility in China's government and central bank to manage a transition from a manufacturing to a consumption-led economy fell to a low. New market circuit breakers, introduced at the start of the year to ease volatility, ended up making things worse and were removed after only a few days.

The Chinese stock market fell 10% in the first week of the year, pushing many markets around the world to their worst start of a year since records began.