BEIJING/HONG KONG (March 20): China will strengthen financial supervision and step up penalties for illegal activities in the financial sector, as part of efforts to streamline financial oversight, according to a draft financial law, released on Friday by authorities for public consultation. Billed as China's first foundational law governing the entire financial sector, the draft legislation marks Beijing's shift from sectoral, rule-based regulation to comprehensive, principle-based legal governance. The draft rule emphasises strengthening the Communist Party's centralised leadership over financial work and building a "financial powerhouse" to support Chinese modernisation. The draft also strengthens anti-money laundering supervision and requires approval for establishing financial institutions and major operational changes. It imposes heavier penalties for illegal activities including financial fraud, significantly raising violation costs to deter misconduct in the sector, according to the statements.

Source: The Edge Markets March 20, 2026 10:53 UTC