Financial Stability and Development Committee Outlines 11-Point Reform Program for Chinese Finance


One of China’s top financial authorities has outlined its ambitious reform program for the Chinese finance sector.

China’s Financial Stability and Development Committee (FSDC) made details of the 11-point program available on 28 May.

According to the FSDC the reform program will involve key central government bodies including the Ministry of Finance, the National Development and Reform Commission (NDRC), the People’s Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), the China Securities Regulatory Commission (CSRC) and the State Administration of Foreign Exchange.

FSDC’s 11-point Reform Program for the Chinese Financial Sector

1.Release of the “Commercial Bank Micro-and-Small Enterprise Financial Service Regulatory Assessment Measures” (商业银行小微企业金融服务监管评价办法), to improve mechanisms for encouraging and restraining MSE financing. Conduct assessment of lending, internal specialised mechanism development, regulatory policy implementation and product and service innovation. Establish differentiated assessment indices and differentiated pricing of MSE loans.
2.Release of the “Work Plan for Deepening Reform and Supplementing the Capital of Small and Medium-sized Banks” (中小银行深化改革和补充资本工作方案). Further drive in-depth reform of small and medium-sized banks and accelerate capital supplementation. Formulation of the “Implementation Opinions for In-depth Reform of Rural Village Credit Societies” (农村信用社深化改革实施意见), to maintain the overall stability of legal persons within counties and strengthen positive incentives.
3.Release of the “Governmental Finance Guarantee, Re-guarantee Institution Sector Performance Assessment Guidelines” (政府性融资担保、再担保机构行业绩效评价指引), to drive support for small and rural businesses by governmental financial guarantee organisations, as well as reduce guarantee fees and help enterprises to resume work and operation and transition through difficulties.
4.Release of the “Second Board Initial Public Offering Share Registration Administrative Mechanisms (Trial)” (创业板首次公开发行股票注册管理办法(试行)), and release of the “Second Board Public Listing Regulations” (创业板首次公开发行股票注册管理办法(试行)), to drive Second Board reforms and the trial registration system. Establishment of sound registration system arrangements for Second Board enterprises, as well as ancillary systems for ongoing supervision and administration.
5.Release of the “Guidance Opinions Concerning Nationwide Small and Medium-sized Enterprise Share Transfer System Registered Companies Transferring to Board Listing” (关于全国中小企业股份转让系统挂牌公司转板上市的指导意见). Acceleration of New Third Board reforms, and active and appropriate implementation of public offering, and establishment of New Third Board registered company board transfer mechanisms.
6.Release of the “Standardised Bill Administrative Measures” (标准化票据管理办法) to standardise mechanisms for standardised bill financing, and support circulation on bond markets of packaged products that use bills as their underlying assets. Support investment by asset management products into standardised bills, make use of the investment and pricing capabilities of the bond market, reduce regulatory arbitrage, and better service small and medium-sized enterprises and supply-chain financing.
7.Release of the “Standardised Debt Assets Recognition Rules” (标准化债权类资产认定规则), to clarify recognition scopes and conditions for standardised debt assets.
8.Issuance of the “Foreign Government Institution and International Development Institution Bond Operation Guidelines” (外国政府类机构和国际开发机构债券业务指引), to further improve information disclosure requirements in relation to panda bonds, refine panda bond issuance regulations, encourage issuers with a real need for renminbi funds to issue bonds, and steadily drive the growth of the panda bond market.
9.Drive further external opening of the credits rating sector, and allowing qualified international ratings organisations and private ratings organisations to undertake bond ratings operations within China, and encouraging domestic ratings organisations to actively expand international operations.
10.Guide the standardised development of the registered accounting sector, supervising improvements to the quality control systems of accounting firms, formulating pragmatic plans for adjusting licensed operations of accounting firms and pragmatically raising auditing quality, and improving accounting firm management.
11.Release of the “Opinions on Strengthening Administrative Punishments for Financial Conduct in Breach of Laws” (加强金融违法行为行政处罚的意见), to “clarify penalties and illegal income recognition standards for conduct by financial institutions in breach of the law.”

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