1. NFRA Issued the Measures for the Administration of Insurance Company Capital Margin
To enhance the supervision of insurance company capital margin and improve their management standards, the National Financial Regulatory Administration (NFRA) has revised and issued the Measures for the Administration of Insurance Company Capital Margin.
In recent years, the asset scale of China's banking institutions has continued to expand. The previous regulation had a relatively low net asset requirement for deposit-taking banks, and this revision addresses that by raising the net asset requirement for such banks, ensuring the selection of appropriately scaled institutions. To align with the opening-up policy, the Measures remove restrictions on the types of deposit-taking banks. Additionally, to enhance the security of deposit-taking banks, prudential regulatory indicators have been optimised, requiring these banks to have robust internal control and risk management systems.
The Measures change the post-facto filing requirement for capital margin disposal to a post-facto reporting system, simplifying the documentation requirements. At the same time, the Measures clarify that insurance companies are responsible for the authenticity, accuracy, and completeness of the reported materials, reinforcing their primary responsibility. Failure to comply with reporting requirements will result in regulatory actions or penalties by the regulators.
Source: NFRA (2025-09-05)
2. CSRC Seeks Public Comments on the Regulation on Sales Charges for Publicly Offered Securities Investment Funds (Consultation Draft)
As part of the broader publicly offered fund reform initiative to further reduce costs for fund investors, standardise order in the fund sales market and protect investors' legitimate rights and interests, the China Securities Regulatory Commission (CSRC) has revised and issued the Regulation on Sales Charges for Publicly Offered Securities Investment Funds, which was formerly known as the Regulation on Sales Charges for Open-ended Securities Investment Funds. The deadline for public comments is 5 October 2025.
The Regulation consists of 28 articles organised into six chapters. Key provisions include reduced subscription and purchase fee rates, optimised redemption fee arrangements, standardised sales service fees, and clarified legal status for the Fund Institutions Service Platform (FISP) for institutional investors.
Source: CSRC (2025-09-05)
3. Approved Official Launch of FISP
In line with the Action Plan for Promoting the High-Quality Development of Publicly Offered Funds and to enhance services for investors, CSRC has approved the official launch of the FISP, a direct fund platform for institutional investors in the mutual fund industry.
The FISP is an industry-wide service platform authorised by CSRC and constructed and operated by China Securities Depository and Clearing Corporation Limited (CSDC). Fund managers and fund custodians are required to connect to the FISP and may use it to conduct direct fund distribution business. By establishing unified business standards, connecting diverse entities, and consolidating industry distribution capabilities, the FISP provides a centralised, standardised, and automated "one-stop" service for end-to-end data and information exchange for various types of institutional investors investing in mutual funds.
Source: CSRC (2025-09-05)
4. Eight Government Departments Seek Public Comments on the Measures for the Administration of Anti-Money Laundering Special Preventive Measures
To implement the Anti-Money Laundering Law, the Counter-Terrorism Law, and the Law on Foreign Relations, prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction, and regulate AML special preventive measures, the People's Bank of China (PBOC), together with the Ministry of Foreign Affairs, the Ministry of Public Security, the Ministry of State Security, the Ministry of Justice, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the State Administration for Market Regulation, drafted the Measures for the Administration of Anti-Money Laundering Special Preventive Measures (Consultation Draft) and to seek public feedback.
The Measures comprise 31 articles organised into five chapters: General Provisions, Lists and Implementation, Obligations for AML Special Preventive Measures, Legal Liability, and Supplementary Provisions.
(1) Regarding lists and implementation, the roles of the Ministry of Public Security, the Ministry of State Security, the Ministry of Foreign Affairs, and PBOC are clarified in designating, issuing, and delisting entities within their respective mandates. PBOC and the competent authorities of designated non-financial businesses and professions of the State Council are responsible for supervising and guiding financial institutions and designated non-financial businesses and professions in fulfilling their obligations for AML special preventive measures.
(2) Regarding obligations for AML special preventive measures, financial institutions are required to establish robust systems and risk management for these measures, promptly obtain relevant lists, screen customers and their transaction counterparts, and immediately implement special preventive measures and report to the relevant authorities upon confirmation. Financial institutions may also request assistance from the issuing authorities to verify whether a customer or their transaction counterpart is included in the lists.
Source: PBOC (2025-09-05)
5. PBOC Renews Bilateral Local Currency Swap Agreements with European Central Bank, Swiss National Bank and Hungarian National Bank
From 7 to 8 September, PBOC signed bilateral local currency swap agreements with the European Central Bank, the Swiss National Bank, and the Hungarian National Bank, respectively.
The China-Europe bilateral local currency swap arrangement is set at 350 billion CNY / 45 billion euros, with a validity period of three years. The China-Switzerland arrangement is set at 150 billion CNY / 17 billion Swiss francs, valid for five years. The China-Hungary arrangement is set at 40 billion CNY / 1.9 trillion Hungarian forints, also valid for five years.
The renewal of these bilateral local currency swap agreements will help further deepen bilateral monetary and financial cooperation, facilitate bilateral trade and investment between China and the relevant economies, and contribute to maintaining financial market stability.
Source: PBOC (2025-09-11)
6. PBOC and Bank Indonesia Jointly Launched Bilateral Local Currency Settlement Framework and QR Code Interconnection Project
On 11 September, PBOC and Bank Indonesia jointly launched the Local Currency Transaction (LCT) framework and a QR code interconnection cooperation project.
In May 2025, the two central banks signed a memorandum of understanding to upgrade the local currency settlement framework established in 2020 (which facilitated current account transactions and direct investment) to the LCT framework. This expansion extends local currency settlement to all balance of payments items, further promoting the use of local currencies in bilateral trade and investment.
The China-Indonesia cross-border QR code interconnection project officially commenced two-way pilot operation. Scheduled to be fully operational within 2025, the project will adopt local currency settlement and represents a significant advancement in payment cooperation between the two parties.
Source: PBOC (2025-09-11)
7. NFRA Revised and Issued the Measures for the Administration of Trust Companies
The Measures for the Administration of Trust Companies were originally formulated in 2007 as fundamental regulations specifying the functional positioning and operational management of trust companies, and have been implemented for 18 years. Recently, NFRA comprehensively revised and improved the Measures, centring on the "fiduciary" role of trust companies. The revision adjusts the business scope of trust companies and further clarifies their operating principles, shareholder responsibilities, corporate governance, business rules, regulatory requirements, and risk disposal arrangements, thereby improving the regulatory system to promote stronger supervision, risk prevention, and high-quality development in the trust industry. The revised Measures will take effect on 1 January 2026.
(1) Focusing on core responsibilities and adhering to the fundamental purpose of trusts. The business scope has been adjusted based on trust companies' practical operations to highlight their core trust business.
(2) Maintaining an objective-oriented approach and strengthening corporate governance. This involves enhancing the management of shareholder conduct and connected transactions, and establishing scientific internal assessment mechanisms alongside incentive and restraint systems.
(3) Strengthening risk prevention and control, and standardising key business processes. Trust companies are urged to enhance comprehensive risk management, with a focus on compliance management in fiduciary duties and operational risk. Clear requirements for the entire process management of trust business have been defined.
(4) Intensifying regulatory requirements for trusts and clarifying risk disposal mechanisms. This includes raising the minimum registered capital for trust companies, strengthening capital and provisioning management, enhancing conduct-based and look-through supervision, implementing tiered and classified regulatory requirements, and improving the binding force and operability of risk disposal and market exit mechanisms.
Source: NFRA (2025-09-12)
8. NFRA Revised and Issued the Measures for the Regulatory Assessment of Consumer Rights Protection in Financial Institutions
On 12 September, NFRA revised and issued the Measures for the Regulatory Assessment of Consumer Rights Protection in Financial Institutions. The Measures comprise 31 articles organised into six chapters: General Provisions, Assessment Components and Methods, Assessment Procedures, Application of Assessment Results, Organisational Support, and Supplementary Provisions.
(1) Adjusting the assessment scope. The assessment now explicitly applies to "financial institutions established according to law within the territory of the People's Republic of China and regulated by NFRA and its local offices, which provide financial products and services to consumers”, bringing institutions such as financial leasing companies and pension insurance companies within the assessment framework.
(2) Optimising assessment components. The assessment components have been refined into seven elements: "Systems and Mechanisms", "Suitability Management", "Sales and Marketing Behaviour Management", "Dispute Resolution", "Financial Education", "Consumer Service", and "Personal Information Protection".
(3) Improving assessment procedures. The implementation process has been further detailed into stages including information collection, initial assessment, reassessment, and review, with specific requirements clarified for each stage. Reassessment and review must be conducted through collective deliberation.
(4) Strengthening vertical coordination. Local offices of NFRA may, in accordance with the annual consumer protection assessment plan formulated by NFRA, reasonably adjust assessment indicators based on factors such as the types of financial institutions, their business models and scale, and customer reach within their jurisdictions.
(5) Deepening the application of results. NFRA and its local offices shall implement differentiated regulatory measures based on the consumer protection assessment results. Positive incentives will be enhanced for institutions with stronger assessment results, while corresponding regulatory measures will be taken against those with poorer results in accordance with the law.
Source: NFRA (2025-09-12)
9. Notice of the PBOC on Matters Related to RMB Cross-Border Interbank Financing by Banking Financial Institutions (Consultation Draft)
In order to further support domestic banking financial institutions in conducting RMB cross-border interbank financing with overseas institutions, develop the offshore RMB market, and improve macro-prudential management of cross-border capital flows,PBOC has drafted the Notice of the PBOC on Matters Related to RMB Cross-Border Interbank Financing by Banking Financial Institutions (Consultation Draft) to seek public feedback.
The main content includes:(1) Covering all types of RMB cross-border interbank financing. (2) Specifying that the maximum term for RMB cross-border interbank financing shall not exceed one year, aligning with the maximum term for domestic interbank business. (3) Introducing the counter-cyclical adjustment mechanism. (4) Encouraging domestic banks to respond to market demand and conduct business in accordance with laws and regulations. (5) The applicable entities arebanks legally established in China with international settlement capabilities, including Chinese-funded banks, wholly foreign-owned banks, Sino-foreign joint venture banks, and domestic branches of foreign banks in China.
Source: PBOC (2025-09-12)
10. Enterprise Bankruptcy Law (Revised Draft) Seeks Public Comments
The 17th Session of the Standing Committee of the 14th National People's Congress reviewed the Enterprise Bankruptcy Law of the People's Republic of China(Revised Draft). The revised draft comprises 216 articles organised into 16 chapters, introducing substantial additions and amendments to over 160 articles compared to the current Enterprise Bankruptcy Law's 136 articles across 12 chapters, representing a comprehensive revision of the existing law.
Notably, according to Article 58 of the draft revision, qualified financial transactions lawfully subject to close-out netting shall not be subject to Article 22 (right of the insolvency administrator to select performance), Articles 43 to 45 (right of revocation) of this Law. The scope of qualified financial transactions shall be prescribed by laws, administrative regulations, or determined by the financial regulatory authorities under the State Council.
Source: National People's Congress of China (2025-09-12)
11. CSRC Revised and Issued Provisions on the Categorised Assessment of Futures Companies
To improve the categorised supervision system for the futures industry and enable better allocation of regulatory resources, CSRC has revised the Provisions on the Categorised Supervision of Futures Companies. This revision changes the title from the Provisions on the Categorised Supervision of Futures Companies to the Provisions on the Categorised Assessment of Futures Companies, while primarily amending and refining the following two aspects:
(1) Refined Deduction Criteria. This includes clarifying the basis for point deductions, improving the types of regulatory measures and their corresponding point values, eliminating duplicate deductions, and incorporating violations by shareholders and actual controllers into the company's assessment.
(2) Optimised Bonus Criteria. This involves optimising and refining the indicators for assessing the ability to serve the real economy, restructuring the bonus system for market competitiveness, removing certain assessment indicators, adjusting special evaluations, and modifying incentive assessments for specific circumstances.
Source: CSRC (2025-09-12)
12. SAFE Issued Notice on Matters Related to Deepening the Reform of Foreign Exchange Management for Cross-Border Investment and Financing
The State Administration of Foreign Exchange (SAFE) has issued the Notice on Matters Related to Deepening the Reform of Foreign Exchange Management for Cross-Border Investment and Financing, aiming to deepen the reform of foreign exchange management for cross-border investment and financing and further enhance its convenience.
The main contents include: (1) Eliminating the basic information registration requirement for preliminary expenses of foreign direct investment. (2) Removing the registration requirement for onshore reinvestment by foreign-invested enterprises. (3) Permitting onshore reinvestment of foreign exchange profits under foreign direct investment. (4) Facilitating the receipt of overseas funds by domestic non-enterprise scientific research institutions. (5) Expanding cross-border financing facilitation. (6) Simplifying the registration management requirements for cross-border financing facilitation business. (7) Shortening the negative list for the use of capital account income. (8) Optimising the facilitation of foreign exchange income payment under capital account. (9) Facilitating foreign exchange settlement and payment for property purchases in China by overseas individuals.
Source: SAFE (2025-09-15)
13. NFRA Hosted ASEAN Plus Three Financial Regulators Seminar
On 17-18 September, NFRA hosted the ASEAN Plus Three Financial Regulators Seminar in Nanning, Guangxi. The event was attended by over 20 representatives from financial regulatory authorities across eight countries and regions, including China, South Korea, Thailand, Indonesia, the Philippines, Laos, the Hong Kong Special Administrative Region, and the Macao Special Administrative Region.
The seminar facilitated exchanges on key areas of financial supervision within the ASEAN Plus Three region, as well as the development and challenges of sustainable finance. Discussions were also held with industry representatives on cross-border financial data flows and privacy protection.
Moving forward, NFRA will continue to strengthen cross-border regulatory cooperation with member countries of the ASEAN Plus Three (10+3) cooperation framework, promote the mutual development of Chinese and foreign financial institutions, and support stable economic, trade, and real economy growth within the region.
Source: NFRA (2025-09-25)
14. CSRC and MAS Convened the 9th China-Singapore Securities and Futures Regulatory Roundtable
On 19 September, CSRC and the Monetary Authority of Singapore (MAS) successfully convened the 9th China-Singapore Securities and Futures Regulatory Roundtable in Datong, Shanxi.
Both sides recalled the important consensus reached by the leaders of the two countries on deepening innovative cooperation across multiple fields and positively evaluated the outcomes achieved in capital market cooperation in recent years. These include continuously deepening the ETF connect scheme, strengthening index cooperation, and supporting each other's financial institutions in investing and operating within their respective jurisdictions. The parties conducted extensive and in-depth exchanges on topics including recent capital market reform initiatives, investor protection mechanisms, futures and derivatives supervision, risk monitoring of non-bank financial institutions, and listed company supervision. Both sides agreed to further deepen practical cooperation in capital markets, leveraging mechanisms such as the roundtable to enhance mutual learning and exchanges, thereby contributing to the building of an all-round, high-quality and forward-looking partnership between China and Singapore.
Source: CSRC (2025-09-25)
15. International Operations Centre for Digital Renminbi Commences Official Operations
On 24 September, a promotion session for the business platform of the International Operations Centre for Digital Renminbi was held in Shanghai. The session introduced relevant institutions to the functionalities of the cross-border digital payment platform for e-CNY, the e-CNY blockchain service platform, and the digital asset platform, marking the official commencement of the Centre's operations.
The International Operations Centre for Digital Renminbi was established and is managed by the Digital Currency Institute of PBOC. It is responsible for constructing and operating the cross-border and blockchain infrastructure for e-CNY, advancing cross-border interoperability with domestic and international financial infrastructures, promoting the international operation of e-CNY and its development in financial market business, and serving digital financial innovation.
Source: PBOC (2025-09-25)
16. CSRC and New Zealand FMA Updated and Signed Memorandum of Understanding on Securities and Futures Regulatory Cooperation
On 25 September, CSRC and the New Zealand Financial Markets Authority (FMA) updated and signed the Memorandum of Understanding on Securities and Futures Regulatory Cooperation in Auckland, New Zealand, marking a new phase of collaboration between the securities and futures regulators of China and New Zealand.
For many years, CSRC and the FMA have maintained a sound cooperative relationship, fostering a favourable regulatory environment for collaboration in their respective capital markets. Building on the needs of capital market development and cross-border cooperation, the two sides updated the Memorandum of Understanding originally signed in 2004, which holds significant importance for further strengthening securities and futures regulatory cooperation between China and New Zealand. To date, CSRC has signed bilateral MoUs on regulatory cooperation with securities and futures regulators from 67 countries and regions, establishing smooth mechanisms for cross-border regulatory and enforcement collaboration.
Source: CSRC (2025-09-26)
17. Further Support for Overseas Institutional Investors to Conduct Bond Repo Business in China's Bond Market
On 26 September, PBOC, CSRC, and SAFE jointly issued an announcement to support overseas institutional investors, who are eligible to conduct bond cash trading in China's bond market, in engaging in bond repurchase business.
Furthermore, the National Interbank Funding Center (NIFC), the China Central Depository & Clearing Co., Ltd., and the Shanghai Clearing House (SHCH) jointly issued a Notice on Supporting Overseas Institutional Investors in Conducting Bond Repo Business in the Interbank Bond Market, outlining their collaborative services for this business. Simultaneously, to support overseas institutional investors in conducting bond repo transactions, the SHCH formulated and issued the Business Rules for Clearing and Settlement of Bond Repo Transactions by Overseas Institutional Investors and the corresponding Business Guide. The NIFC also issued the Implementation Rules for Bond Repo Transactions in the Interbank Bond Market by Overseas Institutional Investors.
Shanghai YaoWang Law Offices
E：melody.yang@yaowanglaw.com
Shanghai YaoWang Law Offices
E：sherry.si@yaowanglaw.com
点击下方名片，关注遥望律师事务所官方微信公众号，获取更多最新法律资讯。
