At the 2026 Financial Street Forum the National Financial Regulatory
Administration said it will accelerate structural upgrades of China’s banking
and insurance sectors, promoting specialization and complementary roles over
uniform expansion. Regulators will develop a differentiated assessment and
evaluation framework to steer institutions toward core functions and away from
non‑core activities. Policy will encourage right‑sizing and quality upgrades of
small‑ and mid‑sized institutions on a local basis while safeguarding basic
services, capacity limits and appropriate competition. The NFRA said it will
sustain efforts to curb disorderly competition, enforce mindset and behavioral
changes, crack down on scale‑chasing and non‑compliant marketing, and severely
punish financial "black/gray‑market" activity by setting clear red lines and
stricter operating rules.
