Priorities include closing regulatory gaps, tightening overall enforcement

China will intensify financial oversight, strengthen early risk detection and accelerate regulatory reforms as changing market structures and emerging financial activities pose new challenges to its banking and insurance sectors, the country's top financial regulator said.

Ding Xiangqun, minister of the National Financial Regulatory Administration, made the remarks on Monday at the Annual Conference of Financial Street Forum 2026 in Beijing, outlining priorities that include resolving risks at high-risk institutions, closing regulatory gaps, tightening enforcement and directing financial resources toward the real economy.

READ MORE: Measures set to stabilize finance market

The banking and insurance sectors remain broadly stable, with large institutions operating on a sound footing, and efforts to reform and mitigate risks at smaller institutions are progressing in an orderly manner. Overall financial risks remain under control, Ding said.

Regulators must adopt a more forward-looking and targeted approach to risk prevention, focusing on key areas and taking the initiative in addressing various vulnerabilities, Ding said, adding that measures should include improving risk-resolution mechanisms, expanding resources for risk mitigation and using mergers, restructuring and market exits to deal prudently with high-risk institutions.

She also called for stronger coordination among regulators to eliminate gaps in oversight and crack down on illegal financial activities. Supervision should cover cross-regional and cross-departmental activities, as well as financial services involving new business models and products. All financial activities should be brought within the regulatory framework, she said.

China has accelerated the development of its financial legal framework in recent years, making significant progress in the enactment and revision of legislation, Ding added.

Authorities should address remaining weaknesses in the regulatory framework, taking into account the differing risk profiles and oversight needs of financial institutions and emerging challenges involving partnerships with third parties as well as cybersecurity issues.

As the financial sector's operating environment, institutional structure and risk patterns undergo profound changes, regulators must upgrade capabilities and methods, Ding said.

Alongside tighter oversight, China will push ahead with financial sector reform and transformation to strengthen support for high-quality economic development, Ding said.

With a broad range of financial institutions operating in the country, regulators should encourage differentiated business strategies and greater complementarity. Authorities will work to improve differentiated assessment and evaluation systems, guide institutions toward areas where they have comparative strengths, and promote the consolidation and quality improvement of small and medium-sized institutions according to local conditions.

Regulators will also step up efforts to maintain market order, discourage institutions from pursuing scale at the expense of sound business practices, crack down on noncompliant marketing, and take tougher action against illicit and gray-market activities in the financial sector.

The aim is to establish clear boundaries for market competition and reinforce standards for responsible business operations, Ding said.

Support will be strengthened for the development of new quality productive forces, including the expansion and upgrading of advanced manufacturing, and the improvement of capacity and quality in the services sector.

Financial institutions will be encouraged to boost support for infrastructure projects, helping major projects generate broader benefits.

ALSO READ: China to advance RMB use, financial opening-up

Meanwhile, China will continue opening its financial sector to foreign participation, promoting fair competition, constructive engagement and mutually beneficial cooperation between domestic and foreign-funded institutions, Ding said.

Foreign institutions will be encouraged to draw on their comparative advantages in wealth management, pension and healthcare services — along with green finance — and to participate in a wider range of pilot programs.

China has consistently supported multilateralism. It has signed regulatory cooperation agreements with financial supervisory authorities in 90 countries and regions, Ding said.

As global financial risk requires stronger dialogue, consultation and practical cooperation, she said regulators should anticipate challenges arising from emerging technologies — including artificial intelligence — and help develop supervisory standards and rules for emerging areas such as digital finance.

Contact the writers at jiangxueqing@chinadaily.com.cn