China Issues New Plan for Regulation of Key Financial Infrastructure

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China’s top financial regulators have jointly issued a new plan for improving the regulation of the country’s key financial infrastructure systems.

The People’s Bank of China (PBOC), the National Development and Reform Commission (NDRC), the Ministry of Finance, the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange (SAFE) jointly issued the “Work Plan for the Overall Regulation of Financial Infrastructure” (统筹监管金融基础设施工作方案) on 4 March.

The Plan was issued with the approval of the 10th meeting of the Central Commission for Comprehensive Deepening of Reform (中央全面深化改革委员会).

PBOC said that the goal of the plan is to “strengthen the development of financial infrastructure, perform overall regulation of key financial infrastructure, and improve the ability to serve the real economy and prevent financial risk.”

According to PBOC the Plan will see the “unification of regulatory standards, improvement to market entry regulation and optimisation of infrastructure arrangements,” as well as efforts to drive the creation of a financial infrastructure system which is “advanced and reliable and rich in flexibility.”

PBOC pointed in particular to a focus on six key areas of financial infrastructure including:

  1. Financial asset registration and trust system,
  2. Clearance and settlement system
  3. Transaction infrastructure
  4. Transaction report database
  5. Key payments system
  6. Basic credit system.

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