ISSUING AUTHORITY:

National Financial Regulatory Administration

DATE OF ISSUANCE:

April 8, 2025

EFFECTIVE DATE:

April 8, 2025

On April 8, 2025, the National Financial Regulatory Administration (NFRA) issued the Guidelines on Promoting the High-Quality Development of Financial Asset Management Companies and Enhancing Supervisory Effectiveness (“Guidelines”), which came into force upon issuance. The Guidelines are composed of five main sections: General Requirements, Corporate Governance, Fulfilling Functional Roles and Supporting Risk Mitigation, Reinforcing Risk Management, and Enhancing Regulatory Quality and Efficiency.

As a key regulatory document tailored to financial asset management companies (AMC), the Guidelines incorporate practical regulatory experience and align with the broader national strategies on financial reform and risk prevention. The Guidelines provide a comprehensive framework for AMC governance, risk control, and market conduct, emphasizing the balance between functional utility and commercial sustainability. The document clarifies the responsibilities of boards of directors and senior management, while also establishing mechanisms to strengthen internal controls, improve incentive and accountability structures, and build institutional resilience. The Guidelines also urge AMCs to focus on their core business, especially in acquiring, managing, and disposing of non-performing assets. It encourages AMCs to support the resolution of risks in key areas such as small and medium financial institutions and the real estate sector.

The issuance of the Guidelines reflects China’s consistent efforts to strengthen financial risk prevention and promote the sound and sustainable development of AMCs. By enhancing the regulatory framework, the Guidelines are expected to improve the market function of AMCs, support the resolution of non-performing assets, and contribute to the long-term stability and high-quality development of the financial system.

Reference:

《关于促进金融资产管理公司高质量发展提升监管质效的指导意见》