The Financial Regulatory Administration and three other departments jointly issued 22 measures, aiming to basically establish an effective governance mechanism for financial institutions by 2029

On July 31, the Financial Regulatory Administration, the Central Bank, the Securities Regulatory Commission, and the Ministry of Finance jointly issued the "Implementation Opinions on Improving the Governance of Financial Institutions," proposing 22 measures. It aims to establish a governance mechanism for financial institutions by 2029 that features clear boundaries of responsibilities and powers, compatible incentives and constraints, strict risk management, and standardized and efficient operations. Core measures include: strict control over shareholder access, building a "firewall" between industrial capital and financial capital, penetrating identification of major shareholders and actual controllers, and prohibiting the concealment of control rights and related relationships; strict regulation of shareholder behavior, prohibiting the transfer of benefits to shareholders and related parties; strengthening the responsibilities of directors, senior executives, and other "key minorities," and preventing the "flow of personnel with violations"; implementing lifelong accountability for major illegal and irregular behaviors; early intervention for institutions with significant governance defects; promoting the revision of important laws and regulations in the financial sector, and improving systems related to shareholder equity, corporate governance, and market exit.