The NFRA's Steering of Domestic Financial Institutions in 2024
February 19, 2024 | BY
Susan MokAs the first anniversary of the National Financial Regulatory Administration approaches, Evelyn Song of Tian Yuan Law Firm examines its short but influential history and the ongoing importance of its support for the property sector
Summary
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- The NFRA is a relatively new supervisor for China's domestic financial sector
- It has proven to be robust, with clear objectives to strengthen supervision, emphasizing risk control; but support for the property sector is also within its aims
- Existing debt is a serious risk issue in the sector, and the NFRA has set out a flexible policy to alleviate such risks by way of restructuring or exchange of non-performing assets
- The NFRA has also indicated support for the "Three Critical Projects" and developers of existing projects
At the beginning of 2024, the supreme administrator of the domestic financial industry that was newly formed in May 2023, namely the National Financial Regulatory Administration (the "NFRA"), reflected on its achievements in 2023 and set out its objectives for 2024. The NFRA expressed its clear intention of strengthening supervision of domestic financial institutions, and emphasized the key pursuit of risk control. At the same time, it continued to take a moderately supportive approach towards the property industry, which some commentators have speculated will collapse in recent years.
I. Overview of the NFRA's Recent Work
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