China's National Financial Regulatory Administration issues interim supervisory rating rules for wealth management companies

China's National Financial Regulatory Administration (NFRA) has issued the Interim Measures on Supervisory Ratings for Wealth Management Companies, effective immediately, establishing a formal supervisory rating framework to support the transition and differentiated regulation of bank wealth management subsidiaries. The measures set out rating requirements, factors, procedures and the use of outcomes for categorised supervision. Ratings are based on six modules with assigned weights: corporate governance (10%), asset management capability (25%), risk management (25%), information disclosure (15%), investor rights protection (15%) and information technology (10%), alongside tailored add-on points, deductions and level adjustment factors to form a comprehensive assessment of business management and risk conditions. The process covers firm self-assessment, initial ratings, review and feedback, and allows regulators to dynamically adjust results if significant previously unknown issues emerge or if a firm’s risk or management condition changes materially. Supervisory results are classified into levels 1–6 and an S level, and will be used as an input for allocating supervisory resources, market entry decisions and applying differentiated supervisory measures. NFRA indicated it will strengthen implementation and guidance to support consistent application of the measures.