China issues guideline on high-quality development of banking, insurance sectors

China's banking and insurance regulator has unveiled a guideline that sets the target for the high-quality development of the two sectors in the next few years.

By 2025, China expects the banking and insurance system to have a better financial structure with multiple layers, broad coverage and diversity, according to the China Banking and Insurance Regulatory Commission (CBIRC).

Toward this end, the functions of large and medium banks should be further optimized, and local small and medium-sized banks should further enhance their financial service capabilities.

Meanwhile, China expects the insurance institutions to play a larger role in risk covering, and hopes to seek further development of foreign banking and insurance institutions and foster unique advantages of non-banking financial institutions.

From now to 2025, the country hopes to establish a modern financial enterprise system with Chinese characteristics by improving corporate governance, as well as a financial product system that meets market demand with diverse and customized products.

The guideline particularly stressed the need to create financial products that support the real economy and improve people's lives, including those facilitating strategic emerging industries, advanced manufacturing, technological innovation and agricultural development.

The CBIRC also eyes further improvement in the credit, insurance, trust, financial leasing and non-performing loan markets, as well as effective handling of financial risks in key sectors.

Efforts should be made to prevent and dissolve risks in the banking and insurance industries, while banks and insurance institutions should prevent capital from illegally flowing into the property market, it said.