National Financial Regulatory Administration, People’s Bank of China, China Securities Regulatory Commission and Ministry of Finance issue 22 measures to strengthen financial institution governance by 2029

The National Financial Regulatory Administration, People’s Bank of China, China Securities Regulatory Commission and Ministry of Finance jointly issued 22 measures across nine areas to strengthen the governance of financial institutions. By 2029, the authorities aim to establish governance mechanisms with clear divisions of responsibility, aligned incentives and constraints, rigorous risk management, and standardized and efficient operations. The measures seek to integrate Communist Party leadership with corporate governance, strengthen controls against improper intervention by major shareholders and insider control, and apply look-through supervision to equity holdings and related-party transactions. They also call for improved board structures, greater accountability for directors and senior executives, stronger incentive, internal control and compliance arrangements, and differentiated supervision based on institutions’ categories and risk levels. The authorities will enhance risk monitoring and early warning, increase penalties for misconduct, strengthen coordination between central and local authorities, and oversee implementation of the measures.