The NFRA's Steering of Domestic Financial Institutions in 2024

February 19, 2024 | BY

Susan Mok

As 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

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Summary

  • 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