Core Viewpoint - The article highlights the significant progress made in financial risk prevention and resolution during the "14th Five-Year Plan" period, emphasizing the reduction of high-risk institutions and assets, as well as improvements in the banking sector's ability to support the real economy [1][3]. Financial Risk Management - The number of high-risk institutions and the scale of high-risk assets have been significantly reduced from their peak levels, with a notable portion of provinces achieving "dynamic zero" for high-risk small and medium-sized institutions [3][4]. - Regulatory authorities have implemented tailored reform plans for key regions, utilizing methods such as mergers, restructuring, and market exits to effectively manage risks [3][4]. - Key regulatory indicators such as non-performing loans, capital adequacy, and solvency are showing positive trends, indicating a healthy banking and insurance sector [3][4]. Support for the Real Economy - During the "14th Five-Year Plan," the banking and insurance sectors provided an additional 170 trillion yuan to the real economy through various financing methods [7]. - The annual growth rates for loans in key areas such as scientific research, manufacturing, and infrastructure are 27.2%, 21.7%, and 10.1%, respectively [7]. - The balance of inclusive loans for small and micro enterprises reached 36 trillion yuan, which is 2.3 times that of the end of the "13th Five-Year Plan," with interest rates decreasing by 2 percentage points [7]. Reform of Financial Institutions - The reform of rural financial institutions, particularly rural credit cooperatives, is a core focus, with over half of the provinces establishing provincial-level legal entities [5][6]. - The number of banking financial institutions in China decreased to 4,295 by the end of 2024, a reduction of 195 from 2023, reflecting the central government's push for consolidation among small banks [5][6]. - The ongoing reforms aim to enhance capital adequacy and risk management capabilities through mergers, capital increases, and improved governance structures [6][8]. Regulatory Enhancements - The financial regulatory framework has been significantly strengthened, with 171 regulations issued across banking, insurance, and asset management sectors over the past five years [9]. - The recent discussions on the revised draft of the Banking Supervision Law indicate a move towards a more comprehensive regulatory system that integrates macro and micro-prudential oversight [9]. - While stricter regulations may increase compliance costs in the short term, they are expected to foster a healthier and more sustainable financial environment in the long run [9].

Core Viewpoint - The Chinese financial regulatory authority is committed to enhancing the financial regulatory system during the "14th Five-Year Plan" period, focusing on systemic reform and improvement of regulatory effectiveness [1][2][3] Group 1: Regulatory System Improvement - Significant progress has been made in revising important industry laws, with 171 regulatory documents issued over the past five years, establishing a comprehensive regulatory framework that integrates macro and micro prudential supervision [1] - The revision draft of the Banking Supervision Law has been discussed and approved by the State Council, while the Insurance Law revision is also advancing [1] Group 2: Enhanced Regulatory Effectiveness - The regulatory authority has implemented tiered supervision for 41 key institutions and delegated regulatory powers to 112 small and medium-sized insurance companies, focusing on critical risks and behaviors that threaten financial stability [2] - The "Golden Supervision Project" has been launched, utilizing big data and artificial intelligence to strengthen regulatory capabilities [2] Group 3: Consumer Protection Initiatives - A collaborative "big consumer protection" framework has been established, promoting better product suitability management and marketing practices to create a safer financial consumption environment [2] - The number of illegal fundraising cases has decreased by 50% compared to the "13th Five-Year Plan" period, enhancing the protection of consumers' financial assets [2] Group 4: Industry Reform and Efficiency - The integration of party leadership and corporate governance is being promoted, with a focus on differentiated and specialized development of financial institutions [3] - Insurance companies have reduced costs by 350 billion yuan since 2024, with the comprehensive cost ratio for property insurance companies reaching a ten-year low and expense ratios hitting a 20-year low, indicating sustained internal growth momentum in the industry [3]