Last Updated on September 15, 2026 by TMB
China has announced plans to boost its financial sector over the next few years by reforming banking, insurance, and securities, to spur growth through stronger supervision. A plan issued by the country’s Central Financial Commission, in collaboration with other authorities, describes a five-year plan from 2026 to 2030.
During a Thursday State Council Information press conference, Lu Lei, the deputy governor of the country’s central bank, the People’s Bank of China (PBOC), said China is looking to overhaul its current monetary policy so that it better matches the country’s current economic realities.
Proposed Goals for the Chinese Financial Market
The plan aims for several achievements. These include ensuring that regulatory policies are well designed and implemented to be effective, as well as a broader restructuring that makes financial supervision easier. This should, in turn, help the government to significantly reduce financial risk for people in the financial market.
According to Lu Lei, the “PBOC 15th Five-Year Reform and Development Plan” also includes supporting action plans in several other important areas. The plan, among other things, will focus on developing the RMB market outside China, maintaining a stable exchange rate, and significantly boosting RMB liquidity.
Additionally, there is a plan to create a deliberate policy system that encourages major financial strategies and important sectors and industries, while also paying close attention to any weak links. Furthermore, there are plans for reforms that will make the capital market more inclusive, strengthen market resilience, and ensure the Chinese capital market remains highly competitive internationally. Vice Chairman of the China Securities Regulatory Commission, Li Chao, said the goal is to achieve this by the Chinese capital market’s 40th anniversary in 2030.
Preventing Market Risk
The National Financial Regulatory Administration’s deputy head, Cong Lin, also gave a few details at the press conference. Lin said the plan to prevent and control risk will involve deliberate steps to protect small and medium institutions. The new reforms will ensure financial institutions understand the scope of allowed business, follow guidelines for their core activities, and avoid prohibited practices. This aims to keep institutions more streamlined and discourage them from pursuing scattered goals.
The “14th Five-Year Plan,” which spanned 2021 to 2025, saw the insurance and banking industries provide over 170 trillion yuan through bonds, equity, and loans to support the economy.
Interestingly, China has already begun trying to help small and medium enterprises (SMEs) by encouraging institutions to reduce their outstanding payable amounts significantly. The State Council General Office published a notice to help SMEs currently suffering late payments on several deliverables. The PBOC’s Financial Markets Department head, Cao Yuanyuan, said large organizations that can show they are fixing late payments to SMEs and shortening payment terms will receive bond issuance as a financing convenience. Yuanyuan said this is necessary because the PBOC has noticed that several large enterprises have large accounts and sizable cash assets, suggesting they can pay SMEs what they owe but are simply refusing to do so.
