Core Viewpoint - Sound corporate governance is essential for the financial industry's risk prevention and long-term stable development, with the China Banking and Insurance Regulatory Commission (CBIRC) actively promoting governance reforms since 2021 [1][2]. Group 1: Governance Reforms and Achievements - The CBIRC has made significant progress in corporate governance, including the establishment of regulatory frameworks for major shareholders and related party transactions, which have curtailed violations [1][2]. - Since the start of the special rectification campaign, over 2,600 illegal shareholders have been removed, and penalties totaling 140 million yuan have been imposed on violators [2]. - The governance assessment results indicate a stable and improving governance level among banking and insurance institutions, with 138 institutions rated as E-level (poor), a reduction of 44 from 2020 [2]. Group 2: Focus on Small and Medium-sized Institutions - The governance of small and medium-sized institutions remains challenging due to their complexity, but progress has been made through market-oriented restructuring [3]. - Some small banks have successfully established or merged, such as Liao Shen Bank and Shanxi Bank in 2021, although the effectiveness of these mergers requires further observation [3]. - To address capital shortages, small banks are encouraged to diversify their capital sources, with IPOs being a viable option for attracting significant social funds [3]. Group 3: Future Directions - The CBIRC plans to enhance the governance quality of small and medium-sized banks and insurance institutions, focusing on integrating party leadership with corporate governance and regulating major shareholder behaviors [4]. - The regulatory framework for corporate governance is becoming increasingly comprehensive, with guidelines and evaluation mechanisms being established since 2021 [3][4].