China’s 30,000 Local Financial Entities Face Tougher Scrutiny
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What’s new: China is tightening its grip on local financial institutions that offer services without a proper license, a move that could significantly reduce the number of such firms, currently estimated at more than 30,000, people familiar with the matter told Caixin.
The National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration for Market Regulation have jointly issued a notice instructing local authorities to strengthen scrutiny of local financial organizations, eliminate those entities that do not comply with the rules and strictly control the approval of new ones, Caixin has learned.
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- China plans to reduce over 30,000 unlicensed financial institutions by tightening regulations and stopping approvals for new entities.
- Three regulatory bodies have instructed local authorities to scrutinize, restrict operations, and protect consumers regarding these non-compliant financial organizations.
- The aim is to expel non-compliant institutions within three years, focusing heavily on microloan companies, pawnshops, and other prevalent unlicensed firms.
- 2024-08-15：
- The National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration for Market Regulation jointly issued a notice instructing local authorities to strengthen scrutiny of local financial organizations, eliminate non-compliant entities, and control the approval of new ones.
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