The National Financial Regulatory Administration, along with the People's Bank of China, the China Securities Regulatory Commission, and the Ministry of Finance, have jointly issued a new policy document. This document outlines 22 specific measures across nine sections aimed at improving the governance of financial institutions. The goal is to build a modern financial enterprise system with Chinese characteristics by the year 2029, enhancing both the stability of the financial system and its ability to support high-quality economic growth.

The new guidelines focus on reinforcing the leadership of the Communist Party of China within financial institutions. For state-owned entities, this means strictly integrating party-building requirements into their corporate charters and implementing a system of "two-way entry and cross-appointment." It also mandates that major business decisions be discussed by the party committee beforehand. For non-public financial institutions, the policy encourages expanding the coverage of party organizations and their work.

To improve the structure of corporate governance, the regulations target the prevention of improper interference by major shareholders and control by insiders. Key measures include enhancing the supervision of equity and related-party transactions, optimizing the composition of boards of directors, and strengthening the accountability of directors, senior management, and other key individuals. The "Shareholders" section details rules to prevent majority shareholders from exercising undue influence.

The framework also calls for a more robust internal control and compliance system, along with improved incentive and restraint mechanisms. The regulatory bodies plan to implement differentiated oversight based on the risk profile of each institution, increase penalties for illegal activities, and refine early-warning systems for risk monitoring. The ultimate objective is to create a healthy financial ecosystem by fostering a unique Chinese financial culture and improving coordination between central and local authorities.

Looking ahead, the four regulatory bodies plan to diligently implement these new rules, aiming to significantly improve the effectiveness of financial institution governance. This, in turn, is expected to drive high-quality development within the financial sector and contribute to broader economic and social progress.