In an interview on the National People's Congress “Minister Channel”, the head of China’s National Financial Regulatory Administration (NFRA), Li Yunze, reviewed 2024 financial-sector conditions and set out priorities for 2025 policy execution, including scaling up the real estate and micro and small enterprise financing coordination mechanisms, supporting consumption finance, and widening several technology-finance pilots. Li cited sector indicators including a 16% bank capital adequacy ratio, 200% insurance solvency, and a 1.5% non-performing loan ratio, alongside CNY 3.8 trillion of non-performing asset disposals. For the real estate coordination mechanism established with the Ministry of Housing and Urban-Rural Development, NFRA will continue a city-based, project-centred approach to the “white list” of eligible projects; approved lending has exceeded CNY 6 trillion, covering more than 15 million housing units delivered or under construction. For the small and micro enterprise mechanism established with the National Development and Reform Commission, outreach since October has covered more than 50 million households and generated more than CNY 10 trillion in credit approvals. On consumption-related measures, NFRA will study raising consumer loan limits and extending maturities, and highlighted the launch of the “Auto Insurance Easy to Buy” platform for new energy vehicles and two new public-facing platforms for financial product queries and consumer protection. Next steps include expanding the real estate mechanism’s coverage and extending the project white list to bring more eligible projects into bank lending, alongside research on supporting financing arrangements for a new real estate development model. For private and small firms, NFRA will seek to increase credit supply and reduce intermediaries to lower all-in financing costs. On technology finance, the regulator plans to expand the financial asset investment company equity investment pilot beyond the current 18-city footprint and allow more participating institutions, add CNY 60 billion to the long-term insurance investment reform pilot (on top of an existing scale exceeding CNY 100 billion), and adjust the technology company M&A loan pilot by raising the loan share cap to 80% from 60% and extending the maximum tenor to 10 years from 7. An intellectual property finance ecosystem pilot is also planned with the national intellectual property and copyright authorities to address pledge registration, valuation, and disposal challenges in innovation-active regions.
China Banking and Insurance Regulatory Commission 2025-03-05
China's National Financial Regulatory Administration signals broader real estate white list lending and higher limits for tech M&A loans
Li Yunze, head of China's National Financial Regulatory Administration, outlined 2025 priorities: enhancing real estate and small enterprise financing, supporting consumption finance, and expanding technology-finance pilots. Key indicators include a 16% bank capital adequacy ratio, 200% insurance solvency, and CNY 3.8 trillion in non-performing asset disposals. Plans involve increasing credit for private firms, expanding real estate project eligibility, and advancing technology finance initiatives, including a CNY 60 billion addition to the insurance investment reform pilot.