Core Viewpoint - The People's Bank of China (PBOC) has been enhancing the financial legal system since the 14th Five-Year Plan, focusing on key responsibilities and legislative progress in the financial sector [1] Legislative Progress - Significant advancements have been made in financial legislation, including the promotion of a financial law and the revision of the People's Bank of China Law to strengthen the legal foundation of the central bank system [1] - The Financial Stability Law (draft) has undergone two reviews by the Standing Committee of the National People's Congress, aiming to establish a long-term mechanism for financial risk prevention and resolution [1] - Revisions to the Commercial Bank Law are underway to improve bank governance and their ability to serve the real economy [1] - Progress has also been made in the drafting and revision of the Negotiable Instruments Law, Foreign Exchange Management Regulations, and Company Bond Management Regulations [1]

Legislative Developments - The National People's Congress (NPC) Standing Committee has scheduled 14 legal proposals for continued review and 23 for initial review in 2025, including the Private Economy Promotion Law and Financial Law [1] - The Private Economy Promotion Law is expected to advance with a third draft review scheduled for April 27-30, aiming to enhance the legal environment for the healthy and high-quality development of the private economy [1] - The Financial Law and Financial Stability Law are also under scrutiny, with the People's Bank of China advocating for their expedited introduction to strengthen financial risk management [2] Financial Regulatory Framework - The current financial legal framework in China is characterized by fragmentation and lacks a comprehensive foundational law to unify and coordinate various financial regulations [2] - International experience suggests that many developed economies have achieved regulatory unity through foundational financial legislation, which China is encouraged to consider [2] - The People's Bank of China Law, established in 1995, has not undergone significant revision since 2003, indicating a need for updates to address existing gaps in monetary policy and financial stability [3]

Group 1: Legislative Developments - The National People's Congress (NPC) Standing Committee has scheduled 14 legal proposals for continued review and 23 for initial review in 2025, including the Private Economy Promotion Law and Financial Law [1] - The Private Economy Promotion Law is expected to advance with a third draft review scheduled from April 27 to 30, aiming to enhance the legal environment for the healthy and high-quality development of the private economy [1] - The NPC Standing Committee emphasizes the necessity and significance of establishing the Private Economy Promotion Law to ensure legal stability and long-term benefits [1] Group 2: Financial Legislation - The Financial Law and Financial Stability Law are under close scrutiny, with the People's Bank of China (PBOC) pushing for the expedited introduction of the Financial Stability Law [2] - Current financial laws in China, such as the Securities Law and PBOC Law, exhibit a fragmented and localized structure, lacking a comprehensive foundational law to unify regulation across sectors [2] - Suggestions have been made to draw from international experiences to create a Financial Law that enhances China's influence in international financial regulations and strengthens legal safeguards for financial supervision [2] Group 3: PBOC Law Revision - The PBOC Law, established in 1995, has only undergone one major revision in 2003, and there are calls for its urgent amendment to address deficiencies in monetary policy and financial stability [3] - Current issues identified in the PBOC Law include inadequate statutory responsibilities and insufficient legal mechanisms for effective governance [3] - Recommendations have been made to accelerate the legislative process for revising the PBOC Law to solidify the outcomes of institutional reforms [3]