New Law to Give Communist Party Bigger Say in Supervising China’s Financial System

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The People’s Bank of China released the first draft of the Financial Stability Law in April 2022. Photo: VCG

A new draft of China’s Financial Stability Law highlights the Communist Party’s increasing role in steering the country’s financial system, giving the ruling party a bigger say in risk prevention and resolution.

The change, which is in line with the overhaul of China’s financial regulatory system that began last year, is laid out in the second draft of the law published Friday by the National People’s Congress (NPC), the top legislature. The draft is open for public comment until late July.

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The new draft of China's Financial Stability Law increases the Communist Party's role in managing financial risks and unifies fragmented financial regulations.
The financial work leadership agency of the party’s Central Committee will oversee decision-making, coordination, and policy formulation for financial stability.
The Central Financial Commission (CFC) now reinforces centralized leadership over financial work, absorbing the previous Financial Stability and Development Committee.

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What Happened When

March last year：: A reform plan was published aiming to strengthen the Central Committee’s centralized and unified leadership over financial work.