China Banking and Insurance Regulatory Commission sets priorities for local small financial institution risk resolution stricter supervision and property financing rules

The China Banking and Insurance Regulatory Commission published a readout of an expanded Party committee meeting that set recent priorities for financial risk control, stricter supervision and sector restructuring. Immediate tasks include resolving risks at local small and medium-sized financial institutions without allowing destabilizing failures, using the housing delivery whitelist system more actively, and accelerating financing rules for the property sector's new development model. The meeting also called for coordination on local government debt risk resolution and support for the exit and transformation of local government financing platforms, alongside stronger use of the inter-ministerial platform against illegal financial activity and updated contingency plans for external shocks. Supervisory work is to focus on tighter entry controls, tougher enforcement and accountability, a review and revision of regulatory rules, compilation of a powers and responsibilities list, implementation of the Jinjian Project, and gradual delegation of county-level supervisory duties. For the industry, the commission backed differentiated development, a smaller but higher-quality group of small institutions, action against disorderly competition, and multi-channel capital replenishment to strengthen capital bases.