The draft of the Financial Law is open for public consultation | Tian Xuan from Peking University: The formulation of the Financial Law can systematically integrate financial regulatory rules and clarify the boundaries of authority and responsibility

Daily Economic News Reporter | Zhang Shoulin Daily Economic News Editor | Zhang Yiming

On March 20, the Ministry of Justice, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange published the “Draft of the People’s Republic of China Financial Law” (hereinafter referred to as the “Draft”) on their official websites, publicly soliciting opinions from the public. The deadline for public comments is April 19, 2026.

The “Draft” states that China’s financial sector still faces many risks and hidden dangers, weak regulatory and governance capabilities, subpar service to the real economy, insufficient coordination within the legal system, and a lack of foundational legal regulations.

According to reports, the “Draft” consists of 11 chapters and 95 articles, mainly following these principles: First, emphasizing the political and people-centered nature of financial work. Upholding and strengthening the centralized and unified leadership of the Party Central Committee over financial work, enhancing Party building within financial institutions, adhering to a people-centered approach, and unwaveringly following the path of Chinese-style financial development. Second, based on the foundational legal positioning of the financial sector. Focusing on improving the basic legal system for finance, strengthening coordination and leadership over laws and regulations across financial fields, and clarifying legal requirements on fundamental, principled, and directional issues related to financial development. Third, balancing development and security. Guiding high-quality financial development while addressing prominent issues such as insufficient regulatory measures and incomplete risk disposal mechanisms, and strengthening financial supervision and risk prevention.

Tian Xuan, a representative of the National People’s Congress and a distinguished professor at Peking University, told Daily Economic News that it is very necessary to formulate foundational laws in the financial sector. Although there are already many laws related to finance, most are standalone laws that are disconnected from new trends in financial development and new regulatory requirements, making it difficult to cover emerging business models and cross-sector risks. The development of a financial law can systematically integrate regulatory rules, clarify responsibilities and boundaries, fill institutional gaps, and enhance regulatory coordination and risk transparency. It can also better respond to challenges such as accelerated global financial risk transmission and frequent technological-driven industry iterations, especially for new financial tools and service models created by technologies like artificial intelligence and blockchain. It provides a more adaptable legal framework to regulate financial innovation and openness, balance development and security, and offer a stronger legal guarantee for building a financial powerhouse and serving the real economy.

Overall, Tian Xuan commented that the “Draft” has a clear structure and rigorous logic, establishing a systematic framework for regulation and risk management. Its formulation marks a new stage of systematic and modern legal development in China’s financial sector. Moving forward, efforts can be made to further strengthen regulations in frontier areas such as digital finance and cross-border finance, enhance the foresight and adaptability of laws, and, based on broad industry consultation, refine supporting implementation rules to ensure effective enforcement of the laws.

Cover image source: Daily Economic News Media Library