The China Securities Regulatory Commission has published an abridged version of governance opinions jointly issued with the National Financial Regulatory Administration, the People's Bank of China and the Ministry of Finance. The framework seeks by 2029 to establish clearer governance responsibilities, aligned incentives, stricter risk management and more standardized operations across financial institutions, while addressing improper intervention by major shareholders and insider control. It covers institutions approved to conduct financial business by the three financial regulators, with policy financial institutions and local financial organizations expected to apply the framework by reference. The framework reinforces Party leadership and tightens shareholder eligibility, beneficial ownership transparency and controls on related-party transactions and improper benefits. It also strengthens board and independent director oversight, long-term performance assessment, deferred remuneration and clawbacks, internal audit, compliance and enterprise-wide risk management. Regulators will apply risk-based and look-through supervision, improve governance risk monitoring and intervene early at institutions with major governance deficiencies, while institutions must enhance disclosure, consumer protection and product and service suitability standards.
China Securities Regulatory Commission2026-07-31
China Securities Regulatory Commission publishes joint financial institution governance framework targeting 2029
The China Securities Regulatory Commission has published a joint governance framework for financial institutions that targets clearer responsibilities, stronger controls and stricter risk management by 2029. It tightens oversight of shareholders, boards, remuneration, related-party transactions and internal controls. Regulators will use risk-based, look-through supervision and early intervention for major governance deficiencies.