The 15th Five-Year Plan outline, alongside the dedicated roadmap for constructing a financial powerhouse, has set explicit directives for elevating the quality of financial sector development over the next half-decade. During a State Council Information Office press conference held on the afternoon of September 10th, focused on the initial phase of this new planning cycle, a key regulatory official outlined the strategic approach for the industry's evolution.

Deputy Director of the National Financial Regulatory Administration, Cong Lin, stated that the administration will fully leverage its guiding function to accelerate the reform and transformation of financial institutions, thereby continuously bolstering their internal momentum and vitality for growth. While acknowledging that China's financial sector boasts a comprehensive array and a large number of institutions, he pointed out that persistent issues remain, including suboptimal structural composition, homogeneous business models, and a lack of focus on primary functions.

Cong Lin elaborated that the administration is set to conduct in-depth research to definitively clarify the scope of permissible activities—essentially determining what different types of institutions "can and cannot do." This involves demarcating clear operational boundaries and behavioral red lines. The overarching goal is to steer financial entities toward concentrating on their core competencies and pursuing differentiated development, thereby enhancing the overall adaptability and competitiveness of the financial system. Specifically, the strategy involves several key pillars. It will support the nation's large state-owned banks in better fulfilling their role as the primary workforce serving the real economy and as the cornerstone for maintaining financial stability. Concurrently, it will push policy banks to focus on national strategic priorities, concentrating on business areas that commercial lenders are either unable or unwilling to undertake.

For local small and medium-sized financial institutions, the policy encourages a reduction in their numbers while improving quality, prompting them to establish deep roots in their local communities and cultivate distinctive business operations. In the insurance sector, guidance is directed toward maximizing its function as a shock absorber for the economy and a stabilizer for society. Meanwhile, asset management and other non-bank financial institutions are being urged to play their unique roles in enhancing wealth management services, smoothing direct financing channels, and enriching the diversity of financial service offerings.

Addressing the perpetual theme of financial work, Cong Lin emphasized that preventing and mitigating financial risks is also the core challenge for financial regulation during this planning period. He stressed the commitment to steadily and orderly advance the resolution of risks associated with local small and medium-sized banks. The strategy involves taking preemptive action, establishing a comprehensive full-process prevention and control mechanism, and achieving the early identification, early warning, early exposure, and early disposal of risks. For institutions that exhibit weaker risk resilience, the administration is exploring various methods to integrate resources and fortify their strength, aiming for the forward-looking resolution of potential problems.

Regarding rectifying industry malpractices, the financial regulator will continue to intensify supervisory and law enforcement efforts. This includes cracking down hard on undesirable competitive behaviors such as vicious industry-wide "price wars," illegal commission rebates, and the practice of offering "high interest and high rebates." Cong Lin concluded by reiterating the commitment to guide financial institutions in establishing a correct outlook on political achievements, operations, performance, and risk. This involves discarding an obsession with sheer scale and shifting the focus from pursuing rapid growth and size to prioritizing quality and efficiency, ultimately strengthening their core competitiveness in a sustainable manner.