China regulates its financial market through national laws, State Council regulations, agency rules, licensing conditions, exchange standards and Communist Party policy direction. The framework covers banks, securities firms, futures companies, insurers, asset managers, payment providers, foreign exchange businesses and financial technology platforms. Regulation serves several purposes at once: protecting customers, maintaining financial stability, directing credit into priority industries and preserving state control over cross-border capital flows.
This is not a fully liberalised financial system. Market prices and private businesses play a large role, yet public authorities retain broad control over licensing, interest-rate transmission, foreign currency conversion, overseas investment and the conduct of state-owned financial institutions. A business may comply with the written law and still need to account for regulatory notices, supervisory meetings and policy campaigns. In China, the rule book matters, but so does the current direction of government policy.
Who regulates China’s financial market?
The State Council sits at the top of the administrative structure. It sets broad financial and economic policy, approves major regulatory measures and coordinates responses to financial stress. Financial agencies operate within this central policy framework rather than as fully independent regulators.
Communist Party bodies also play a direct role in financial governance. The Central Financial Commission, established during the 2023 institutional reforms, is responsible for high-level planning, coordination and supervision of financial work. The Central Financial Work Commission oversees Party-related work within the financial sector. Their presence reflects the close connection between financial regulation, national development policy and political oversight.
Day-to-day supervision is divided mainly among the People’s Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission and the State Administration of Foreign Exchange.
The People’s Bank of China
The People’s Bank of China, or PBOC, is China’s central bank. It formulates and carries out monetary policy, manages banking system liquidity, supports payment infrastructure and holds responsibility for many macroprudential matters. It also administers major parts of the anti-money laundering regime and oversees the development of the digital renminbi.
The PBOC influences borrowing conditions through reserve requirements, open-market operations, standing lending arrangements, medium-term lending facilities and policy interest rates. It does not rely on a single official rate in the manner associated with some other central banks. Instead, several rates and liquidity tools transmit monetary policy through the banking system.
The central bank also manages the macroprudential assessment framework. This allows it to examine credit growth, bank capital, property exposure, cross-border financing and other indicators that may threaten financial stability. Its role is therefore broader than setting monetary policy.
The National Financial Regulatory Administration
The National Financial Regulatory Administration, commonly abbreviated as NFRA, began operating in 2023. It replaced the China Banking and Insurance Regulatory Commission and took over parts of consumer protection supervision previously divided between agencies.
The NFRA regulates commercial banks, rural credit institutions, insurance companies, trust companies, financial leasing companies, consumer finance businesses and several other non-securities institutions. Its work includes licensing, prudential supervision, corporate governance reviews, solvency monitoring and enforcement.
The 2023 reforms expanded central control over local financial supervision. The NFRA established local offices and assumed greater responsibility for institutions that had previously fallen under local government oversight. This change sought to reduce inconsistent regional enforcement and regulatory gaps between national and local authorities.
The China Securities Regulatory Commission
The China Securities Regulatory Commission, or CSRC, regulates securities and futures activity. Its remit includes public share offerings, listed companies, stock exchanges, securities firms, futures companies, investment funds and market conduct.
The CSRC supervises the Shanghai, Shenzhen and Beijing stock exchanges. It also oversees exchange-based bond trading, public fund managers and securities intermediaries. Stock exchanges conduct frontline surveillance, review listing applications and impose disciplinary sanctions under the CSRC’s authority.
Insider trading, price manipulation, fraudulent disclosure and unlawful securities offerings fall within the CSRC’s enforcement remit. Serious cases can pass to public security authorities and prosecutors for criminal proceedings. Accountants, sponsors, lawyers and controlling shareholders may also face liability when defective disclosure or fraudulent issuance involves their work.
The State Administration of Foreign Exchange
The State Administration of Foreign Exchange, or SAFE, operates under the PBOC. It administers foreign exchange controls, monitors cross-border payments and manages rules for converting renminbi into foreign currencies.
SAFE’s responsibilities affect foreign direct investment, overseas borrowing, dividend payments, portfolio investment and transfers by individual residents. Commercial banks carry out much of the transaction-level checking, but they do so under SAFE rules and reporting systems.
Current-account payments, such as payments for goods and ordinary services, generally receive more open treatment than capital-account transactions. Investments, loans and transfers of financial assets often require registration, documentary review or use of an authorised investment channel.
Other authorities with financial responsibilities
The Ministry of Finance administers central government finances, accounting policy and sovereign debt matters. The National Development and Reform Commission has responsibilities connected with economic planning, corporate debt issuance in certain categories and major investment projects.
The State Administration for Market Regulation handles company registration, advertising, competition and general consumer matters. The Cyberspace Administration of China oversees cybersecurity, online data controls and cross-border data reviews. Its rules can have a direct effect on banks, online lenders, insurers and companies preparing an overseas listing.
Public security bodies, courts and prosecutors handle criminal financial offences. Local governments retain responsibilities for regional financial risk, although their authority has been reduced or reorganised in areas now supervised more directly by national agencies.
China’s main financial laws
China does not regulate finance through one consolidated financial code. Each sector has its own laws, supplemented by administrative measures, agency rules and technical standards. The result is a layered framework in which legal status matters. A statute passed by the National People’s Congress carries greater legal authority than an agency notice, though lower-level notices can still affect how firms operate from week to week.
Major statutes include the People’s Bank of China Law, the Commercial Banking Law, the Securities Law, the Insurance Law, the Futures and Derivatives Law and the Anti-Money Laundering Law. The Company Law, Enterprise Bankruptcy Law and civil law rules also govern financial institutions and transactions.
The revised Company Law, effective from July 2024, changed capital contribution, director responsibility and corporate governance rules. Financial firms must read those general corporate duties alongside sector rules imposed by the NFRA, CSRC or PBOC.
The revised Anti-Money Laundering Law took effect on 1 January 2025. It strengthened customer identification, beneficial ownership checks, risk-based controls and rules with cross-border reach. It also clarified the responsibilities of financial institutions and certain non-financial businesses.
Data-related statutes have become equally relevant. The Cybersecurity Law, Data Security Law and Personal Information Protection Law regulate customer information, data processing and transfers abroad. A financial group sending account, transaction or employee data to an overseas parent may need contractual safeguards, internal approval and, in some cases, a government security assessment.
Why agency rules matter so much
Primary legislation often states broad duties. Regulators then publish implementing measures that define capital ratios, reporting forms, investor eligibility or product restrictions. Exchanges and industry associations add another layer through membership and trading rules.
Supervisors may also issue window guidance. This term refers to formal or informal instructions delivered through meetings, calls or supervisory communications. Such guidance may address lending growth, property exposure, wealth management sales or foreign exchange activity. It may not resemble a conventional regulation, but regulated institutions generally treat it seriously.
Enforcement campaigns are another feature of the system. Authorities may focus for a period on illegal fundraising, consumer lending, insurance sales or stock-market misconduct. A practice tolerated under lighter supervision can attract rapid attention once it becomes a policy concern. Compliance teams therefore monitor both enacted rules and regulatory priorities.
How commercial banks are regulated
Banks require approval before establishment and before conducting regulated lines of business. Approval is also needed for many changes involving ownership, senior management, branches, mergers or substantial investments. Foreign-invested banks face the same core prudential expectations, together with market-entry and corporate-form requirements.
The banking sector includes large state-owned commercial banks, national joint-stock banks, city commercial banks, rural commercial banks, private banks and foreign banks. The large state-controlled institutions account for a major share of deposits and lending. Their commercial decisions are influenced by profitability, prudential rules and government credit policy.
The NFRA examines capital adequacy, liquidity, asset quality, governance and concentration risk. It may review the qualifications of directors and senior managers and can object to appointments. Banks must establish internal controls for credit approval, related-party transactions, operational risk and information technology.
Chinese capital regulation draws on Basel banking standards, adapted to domestic conditions. Larger banks face stricter expectations because their distress could affect the wider financial system. Supervisors can require corrective action, restrict dividends or business growth and demand capital restoration plans.
Credit policy and directed lending
China has moved away from direct state allocation of nearly all bank credit, but authorities still influence where loans go. Policy guidance may encourage lending to manufacturing, agriculture, small businesses, green projects or technology companies. Regulators may discourage credit for speculative property purchases, heavily indebted developers or industries with excess capacity.
This direction can operate through interest incentives, relending programmes, capital treatment and supervisory expectations. Banks retain responsibility for assessing borrowers, yet commercial risk decisions sit within national policy goals. That balance is one of the defining traits of Chinese banking.
Policy banks occupy a separate position. The China Development Bank, Export-Import Bank of China and Agricultural Development Bank of China finance government-backed development, trade and agricultural programmes. Their mandates differ from those of ordinary deposit-taking banks.
Interest rates and the loan prime rate
Bank lending and deposit pricing has become more market-based, though the PBOC continues to shape rates. The loan prime rate, or LPR, serves as a reference for many business loans and mortgages. A panel of banks submits rates based partly on central bank funding conditions.
The PBOC can influence the LPR and broader borrowing costs through policy rates, liquidity operations and guidance. Mortgage rates may also be subject to national floors, local adjustments or rules connected with whether the borrower owns another home.
Deposit insurance and bank failures
China introduced deposit insurance in 2015. Eligible deposits are protected up to RMB 500,000 per depositor at each insured institution, including covered principal and interest. The scheme applies to participating deposit-taking institutions rather than every financial product sold through a bank.
Bank-issued investment products, funds and insurance policies do not become insured deposits simply because a bank distributes them. This distinction matters because customers have sometimes assumed that products sold at a bank counter carry a state guarantee.
When a bank becomes distressed, authorities may arrange a takeover, restructuring, merger or insolvency process. The handling of Baoshang Bank after its 2019 takeover showed that regulators can impose losses beyond protected deposit amounts while shielding most ordinary retail depositors. It also weakened the old assumption that every bank liability would receive public support.
Shadow banking and asset management rules
Shadow banking refers to credit activity conducted outside ordinary bank loans or through structures that reduce the visibility of risk. In China, it has included trust loans, entrusted loans, bankers’ acceptances, wealth management products and layered investment vehicles.
These arrangements grew partly because banks and borrowers tried to work around lending restrictions. A bank could sell a wealth management product and direct the money through a trust or asset manager to a borrower that might not qualify for a standard loan. The legal form changed, but the economic exposure often remained similar to bank credit.
Rules introduced from 2018 onward sought to apply more consistent standards across bank, trust, securities and insurance asset management products. They restricted multi-layer structures, maturity mismatches and excessive leverage. They also required clearer valuation and reduced reliance on implied repayment promises.
An implicit guarantee arises when investors expect a bank, asset manager or government body to cover losses even though the contract contains no such promise. Regulators have tried to weaken this expectation because it encourages investors to ignore risk and allows weak borrowers to obtain cheap funding.
Trust companies remain regulated financial institutions, but their business models have faced tighter scrutiny. Property financing, local government exposure and channel business have drawn particular attention. Wealth management subsidiaries owned by banks now conduct much of the investment activity once held directly on bank balance sheets.
Regulation of stocks and public companies
Mainland shares trade mainly on the Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange. Shanghai hosts many large companies and the technology-focused STAR Market. Shenzhen includes the Main Board and ChiNext, while Beijing concentrates on smaller firms that meet its admission standards.
Companies offering shares to the public must satisfy the relevant exchange’s eligibility and disclosure requirements. China has expanded a registration-based initial public offering system. Under this model, exchanges review applications and the CSRC completes registration after the review process.
Registration does not mean automatic admission. Regulators and exchanges examine financial statements, ownership, business continuity, use of proceeds and disclosure quality. Policy concerns and market conditions may affect application timing. Authorities can also slow new issuance or tighten refinancing rules when they believe share supply is placing pressure on the market.
Disclosure duties
Listed companies must publish annual, interim and quarterly reports as required. They must also disclose material events without undue delay. Such events can include major litigation, asset purchases, debt defaults, changes in control and large connected transactions.
Directors, senior officers and controlling shareholders bear responsibility for truthful disclosure. Securities firms acting as sponsors must conduct due diligence rather than accept management statements at face value. Auditors and law firms may face penalties if they fail in their professional duties.
The CSRC and exchanges can issue warnings, impose fines, restrict market participation or order corrections. Investors may bring civil claims for losses caused by false statements. China also permits securities representative litigation, allowing an investor protection body to represent a large group of affected shareholders in an appropriate case.
Market abuse controls
The Securities Law prohibits insider trading, manipulation and the use of false information to influence prices. Trading surveillance systems monitor unusual account activity, concentrated orders and links between traders and corporate insiders.
Manipulation can involve matched orders, false orders, coordinated account activity or trading intended to create a misleading price or volume. Liability can extend beyond the person who placed the trades to organisers and funding providers. Serious offences can produce criminal sentences as well as confiscation and administrative fines.
Short selling and securities lending are permitted only within regulated structures. Authorities adjust collateral requirements, eligible securities and lending conditions according to market policy. High-frequency and programme trading also face reporting and surveillance requirements.
Bond market supervision
China’s bond market is divided mainly between the interbank bond market and exchange markets. The PBOC oversees major parts of the interbank market, where banks and institutional investors conduct most trading. The CSRC and exchanges supervise exchange-listed bonds.
Government bonds, policy bank bonds, financial bonds, corporate bonds and debt financing instruments each follow their own issuance route. The National Association of Financial Market Institutional Investors performs registration and self-regulatory functions for several interbank debt products.
Bond defaults have become more common than they once were. Regulators have allowed some borrowers, including state-linked enterprises and property developers, to miss payments or restructure debt. This has strengthened market pricing of credit risk, though public intervention remains possible where a default could threaten broader stability.
Credit rating agencies, underwriters and trustees face conduct and disclosure duties. Regulators have acted against inflated ratings, weak due diligence and misleading use-of-proceeds statements. Investors should not treat a domestic credit rating as a government repayment promise.
Futures and derivatives regulation
The Futures and Derivatives Law, effective from August 2022, established a national statutory basis for futures trading, over-the-counter derivatives and close-out netting. The CSRC supervises futures exchanges, futures brokers and much of the related market conduct.
China operates commodity futures exchanges in Shanghai, Dalian, Zhengzhou and Guangzhou, as well as the China Financial Futures Exchange. Products cover metals, energy, agricultural commodities, equity indexes and government bond futures.
Market access depends on the product and investor category. Some contracts are open to approved overseas traders through domestic brokers. Position limits, margin requirements, large-trader reporting and daily price bands help control leverage and disorderly trading.
Over-the-counter derivatives used by banks and institutions are also subject to documentation, reporting and risk management rules. The recognition of close-out netting improved legal certainty for counterparties, particularly foreign banks assessing capital exposure.
Investment funds and private fund managers
Public securities investment funds require regulatory approval or registration and may be offered to retail investors. Their managers and custodians must meet governance, disclosure and asset-separation requirements. Investment concentration, borrowing and related-party dealings are restricted.
Private investment funds operate under a different regime. Managers generally register with the Asset Management Association of China, and products are filed with the association. Registration does not amount to government endorsement of a manager or fund.
Private funds may raise money only from qualified investors and cannot advertise to the general public. Managers must verify investor eligibility, explain risk and avoid promising fixed returns. Regulators have targeted businesses that use private fund registration as a cover for deposit-taking or illegal fundraising.
Asset custody and separation are central controls. Client assets should remain apart from the manager’s own property, reducing the chance that operating creditors can claim fund investments. In practice, investors still need to examine valuation methods, redemption terms, leverage and conflicts of interest.
Insurance market regulation
The NFRA regulates life insurers, property and casualty insurers, reinsurers, insurance groups and intermediaries. An insurer needs approval for establishment, major ownership changes and regulated business activities. Senior managers must satisfy fitness and experience standards.
Solvency regulation requires insurers to hold capital in relation to underwriting, market, credit and operational risk. China’s risk-oriented solvency framework assesses both numerical capital ratios and the quality of governance and risk controls.
Life insurance supervision pays close attention to product duration, surrender risk and the gap between promised benefits and investment returns. Property insurers face rules on claims reserves, pricing and catastrophe exposure. Motor insurance, health coverage and agricultural insurance each attract additional requirements.
Sales conduct is a recurring concern. Agents and bank distributors must not misdescribe an insurance policy as a deposit or short-term investment. Fees, surrender penalties, exclusions and benefit conditions must be presented accurately. Customers should receive a cooling-off period for qualifying life policies.
Insurers can invest premium income in bonds, shares, funds, infrastructure and other approved assets, subject to allocation and risk controls. Supervisors monitor related-party investments, property exposure and the use of complex structures to move money to controlling shareholders.
Payments and financial technology
The PBOC licenses non-bank payment institutions. Licensed businesses may process online payments, bank card transactions or prepaid value within their approved scope. They must protect customer funds, retain transaction records and maintain anti-fraud controls.
Customer reserve funds held by payment companies are centrally managed rather than freely invested by the provider. This rule followed concerns that payment businesses could misuse money held for customers. Clearing also passes through regulated infrastructure, giving authorities better transaction visibility.
Large technology groups may offer payments, consumer loans, fund distribution and insurance services through separate regulated entities. Authorities require financial activity to sit inside an appropriately licensed company with adequate capital. A technology label does not exempt a business from financial regulation; regulators have made that point rather firmly.
Online lending and microcredit
Peer-to-peer lending expanded rapidly during the 2010s, followed by fraud, platform failures and investor losses. Regulators closed or converted the sector, and conventional P2P lending has largely disappeared from lawful mainstream finance.
Online microcredit companies face capital, leverage, funding and geographic requirements. Platforms that arrange loans funded by commercial banks must bear an appropriate share of credit risk and cannot act as a lightly capitalised marketing channel while banks assume nearly all losses.
Consumer lenders must disclose annualised borrowing costs and assess repayment capacity. Data collected from mobile devices cannot be used without a lawful basis. Aggressive collection, harassment and misuse of contact lists can lead to administrative or criminal action.
The digital renminbi and cryptocurrency restrictions
The e-CNY is a central bank digital currency issued by the PBOC. Commercial banks and approved operators distribute it to users. It remains a state-issued form of renminbi rather than a privately created crypto-asset.
Mainland authorities prohibit cryptocurrency exchanges, token fundraising and many services connected with virtual currency trading. Financial institutions cannot provide ordinary banking or payment support for prohibited crypto transactions. Cryptocurrency mining has also been heavily restricted.
Blockchain systems may still be used for approved commercial records, trade finance and public administration. The regulatory distinction lies between permitted database technology and privately issued tokens used for fundraising or speculative trading.
Anti-money laundering and illegal fundraising
Financial institutions must identify customers, verify beneficial owners, retain records and monitor transactions. They must file suspicious transaction reports when activity indicates money laundering, terrorist financing or another predicate offence.
A risk-based approach allows institutions to apply stronger checks to higher-risk customers and transactions. Cross-border transfers, complex ownership structures, cash-intensive businesses and politically exposed persons may require closer review.
Illegal fundraising is a major enforcement category in China. It can involve accepting money from the public without permission, promising fixed returns or disguising deposit-taking as wealth management, property investment or online commerce. Both organisers and sales staff may face liability.
Underground banks conduct unauthorised currency exchange or cross-border value transfers. Authorities investigate these networks because they can support capital flight, tax crime, gambling and fraud. Banks monitor account patterns associated with pass-through transfers and networks of related accounts.
Foreign ownership and access to Chinese markets
China has removed many foreign ownership caps in securities, fund management, futures and life insurance businesses. Foreign groups may establish wholly owned operations in several categories, provided that they receive the required licence and meet domestic standards.
Formal ownership permission does not remove operational barriers. Applicants may need local systems, qualified managers, capital, data controls and a business plan accepted by the regulator. Product approval and distribution access can also affect whether a foreign institution can compete effectively.
Foreign portfolio investors can access mainland securities through programmes such as Stock Connect, Bond Connect and the Qualified Foreign Institutional Investor framework. Each route has its own eligible instruments, trading calendar, settlement process and account structure.
Stock Connect links exchanges in mainland China with Hong Kong. Investors trade eligible shares through brokers in their home market while clearing arrangements connect the two jurisdictions. Daily quotas and investor identification rules apply.
Foreign investors must also consider withholding tax, beneficial ownership, foreign exchange conversion and repatriation procedures. Rules can differ between direct investment, portfolio holdings and intercompany lending.
Capital controls and the renminbi
The renminbi is convertible for many current-account transactions, but capital-account convertibility remains controlled. A company paying for imported equipment follows a different process from a company moving investment capital abroad.
Chinese residents have an annual foreign currency purchase allowance for approved personal uses, subject to bank checks and SAFE rules. Splitting transfers among several people to evade the allowance can trigger scrutiny.
Companies making overseas direct investments may need filings or approvals from several authorities. Banks review contracts, tax documents and the commercial basis for transfers. Transactions involving sensitive countries, industries or unusually large outflows receive closer examination.
Foreign businesses can generally remit lawful dividends after completing corporate, tax and banking procedures. Capital reductions, liquidation proceeds and sale proceeds require supporting records. Delays often arise from incomplete paperwork rather than a formal ban, which is not much comfort when a payment deadline is approaching.
Property finance and local government debt
Real estate has close links with Chinese banks, trusts, households and local government revenue. Regulators monitor mortgage lending, developer debt and banks’ concentration in property-related assets. Rules may differ between cities according to housing demand and local policy.
Authorities have used loan concentration caps, down-payment requirements and developer financing conditions to restrain debt. They have also relaxed some controls during weaker property periods. The policy goal is generally to reduce disorderly risk without causing an abrupt collapse in construction and home sales.
Local government financing vehicles borrow to fund roads, utilities and other public projects. Their debts may sit outside ordinary government budgets, creating uncertainty about repayment support. Central authorities have pressed local governments to identify hidden debt, refinance costly obligations and reduce new off-budget borrowing.
Banks and bond investors cannot automatically assume that a local government will repay every financing vehicle debt. At the same time, authorities may arrange restructurings where disorderly defaults could affect regional banks or public services.
Consumer and investor protection
Financial businesses must disclose interest, fees, investment risk and contractual conditions. They must maintain complaint procedures and protect customer account data. The NFRA has a broad role in consumer protection across banking and insurance, while the CSRC handles securities investor matters.
Suitability rules require sellers to consider whether a product matches the customer’s financial position, investment experience and risk tolerance. A high-risk private fund should not be sold as a cash substitute to an inexperienced retail customer.
Regulatory approval does not guarantee repayment or investment performance. Deposit insurance covers eligible deposits within the statutory cap, but it does not cover ordinary fund losses, falling share prices or defaulted wealth management products.
Investors may use complaints, mediation, arbitration or court proceedings, depending on the contract and dispute. Securities law provides civil remedies for false disclosure and other misconduct. Recovery can still depend on evidence, available assets and the practical execution of a judgment.
How enforcement works in practice
Chinese financial regulators can conduct inspections, request records, interview staff and order corrective measures. Administrative penalties include warnings, confiscation of unlawful gains, fines, market bans and licence restrictions.
Responsibility often extends to individuals. Directors, executives, compliance officers, traders and sales staff may face personal fines or disqualification. Criminal matters can be transferred to public security authorities.
Supervisory action does not always begin with a public penalty. A regulator may require an institution to halt a product, reduce an exposure or replace management before publishing any formal decision. Larger institutions maintain regular contact with supervisory teams and submit a substantial volume of prudential data.
Central policy can also alter enforcement speed. Regulators may allow time for remediation where an immediate closure would create broader harm. In cases involving fraud, capital flight or public fundraising, the response can be much faster and less forgiving.
What China’s regulatory model means for market participants
China operates a state-guided financial market. Prices, competition and private ownership remain present, but they function inside boundaries set by public authorities. The state owns major banks and insurers, directs credit policy and controls much of the route through which money crosses the border.
For brokers and financial institutions, compliance requires more than obtaining an initial licence. Firms must monitor changes in business scope, product rules, investor eligibility, data processing and capital requirements. A licence for one activity does not authorise every related service.
Foreign businesses should check whether a transaction needs regulatory registration, bank verification or a domestic licensed partner before committing funds. Contract terms cannot override foreign exchange controls or sector restrictions. Parties should also allocate responsibility for tax records, data transfers and regulatory filings.
Investors should separate state ownership from state guarantees. A state-linked shareholder may reduce perceived default risk, but it does not create an unconditional legal promise of repayment. Recent bond defaults and financial restructurings have made that distinction clearer.
China’s financial regulation is therefore both legal and policy-driven. The State Council and Party bodies set the broad direction; the PBOC manages monetary and systemic matters; the NFRA supervises banks, insurers and many other financial firms; the CSRC regulates securities and futures; and SAFE controls foreign exchange administration.
The framework has opened more room for private and foreign participation, yet licensing, capital controls and supervisory discretion remain central. Anyone trading, lending, investing or operating a financial business in China needs to read formal rules alongside agency notices, exchange standards and current policy priorities. That combination explains how the Chinese finance market works in practice, including the parts that do not fit neatly into a conventional Western regulatory chart.