In a forum speech, the China Banking and Insurance Regulatory Commission set out priorities for the next phase of financial sector policy, centred on better aligning financial services with economic needs, deepening reform and opening-up, and strengthening risk prevention to avoid systemic financial risk. The agenda included promoting a financing model that better coordinates direct and indirect financing, matches funding maturities with industrial development, and links domestic and international markets, alongside greater support for strategic sectors, technology innovation and inclusive finance. On reform, it signalled further supply-side structural adjustments in financial services, guidance for institutions of different types and sizes to specialise, measures to curb disorderly competition, and continued institutional opening-up through pre-establishment national treatment plus a negative list approach. On risk control, it flagged steady progress on mergers and reorganisations of small and medium-sized financial institutions, stronger non-performing asset disposal and capital replenishment, work on financing arrangements compatible with a “new model” for real estate development, and support for resolving local government debt risks; it also pointed to faster enactment, revision, repeal and interpretation of financial laws and supervisory rules, and a more targeted tiered and categorised supervisory framework supported by technology and stronger central-local coordination, as well as enhanced cross-border risk monitoring and international supervisory cooperation. For Beijing, the regulator highlighted that four large banks have established financial asset investment companies in the city and that Postal Savings Bank of China is preparing an AIC, and said it will continue to support more financial policies being piloted first in Beijing to attract additional financial resources to the capital.

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