The 2025 Financial Street Forum Annual Conference, held in Beijing on October 27, brought together senior officials from China’s main financial regulatory institutions, the People’s Bank of China (PBOC), the China Securities Regulatory Commission (CSRC), the State Administration of Financial Regulation (SAFR), and the State Administration of Foreign Exchange (SAFE). The forum served as a major platform for outlining upcoming financial reforms and measures to strengthen the stability, inclusiveness, and global connectivity of China’s financial system.
The Central Bank Resumes Treasury Bond Trading Operations
The People’s Bank of China announced the resumption of open market treasury bond trading operations. Earlier in the year, the central bank had suspended such trading to address imbalances in bond market supply and demand and mitigate accumulating risks. The decision to resume operations indicates that market conditions have stabilized and that the bond market is functioning more smoothly. This move is expected to enhance liquidity management, improve monetary policy transmission, and support the broader objective of maintaining a stable and healthy financial environment.
Personal Credit Relief and Credit System Optimization
The central bank also revealed plans to introduce a one-time personal credit relief policy to help individuals restore their credit standing. Under this initiative, individuals who defaulted on loans below a certain amount during the pandemic but have since repaid them will have these records removed from the credit reporting system. The policy, expected to take effect early next year, aims to improve consumer confidence and facilitate greater access to credit, particularly for small borrowers and individuals affected by temporary financial difficulties.
Advancing the Digital Yuan Framework
Digital finance remains a strategic priority for China’s central bank. The PBOC announced that it will further optimize the digital yuan management system, refine its role within the broader monetary structure, and expand the number of commercial banks authorized to operate digital yuan services. To enhance efficiency and oversight, the PBOC has established two key centers: an international operation center in Shanghai to manage cross-border applications and a digital yuan operation and management center in Beijing to oversee system development and maintenance. These developments demonstrate continued efforts to integrate digital currency into mainstream financial infrastructure while ensuring security and interoperability.
Strengthened Oversight of Virtual Currency Activity
Reiterating its long-standing position, the PBOC emphasized that it will continue to curb domestic operations and speculation in virtual currencies. Working alongside law enforcement agencies, the central bank will enforce existing regulations to prevent financial risks arising from unregulated crypto trading and speculation. It also plans to closely monitor developments related to overseas stablecoins to safeguard China’s financial order and systemic stability.
Protecting Small and Medium Investors in the Capital Market
The China Securities Regulatory Commission introduced the “Several Opinions on Strengthening the Protection of Small and Medium-sized Investors in the Capital Market.” The policy framework focuses on improving investor protection throughout the lifecycle of securities—from issuance and listing to delisting—while promoting fairer trading practices and higher service standards among financial institutions. The CSRC also aims to expand dispute resolution mechanisms to handle securities and futures cases more effectively, contributing to a more transparent and equitable investment environment.
Deepening the Reform of the Growth Enterprise Market
Furthering capital market reform, the CSRC announced the next phase of reform for the Growth Enterprise Market (GEM), following the success of the Science and Technology Innovation Board. The new measures are designed to better align listing standards with the characteristics of innovative and high-growth enterprises in emerging industries. By providing more tailored and inclusive financial services, the reform aims to foster entrepreneurship and technology-driven growth. The CSRC will also continue to strengthen the Beijing Stock Exchange and improve mechanisms linking various tiers of China’s multi-level capital market.
Optimizing the Qualified Foreign Investor System
The CSRC officially launched the “Work Plan for Optimizing the Qualified Foreign Investor System” on October 27. The plan seeks to improve market accessibility, enhance operational efficiency, and broaden the investment scope for international investors. Measures such as streamlined approval processes and an accelerated account-opening system will simplify participation and improve transparency. These reforms underscore China’s ongoing commitment to attracting long-term foreign capital and fostering a more open, globally competitive financial market.
Introducing a Refinancing Shelf Issuance System
To support listed companies in financing their growth and restructuring activities, the CSRC announced plans to introduce a refinancing shelf issuance system. This mechanism allows companies to register once with regulators and conduct multiple security issuances within a set period, thereby improving flexibility and efficiency. The new system is expected to facilitate mergers and acquisitions, promote industrial consolidation, and strengthen the capital foundation of listed firms.
Nine New Measures from the State Administration of Foreign Exchange
The State Administration of Foreign Exchange announced nine upcoming measures aimed at deepening the opening of China’s foreign exchange market. These include expanding pilot programs for high-level cross-border trade, simplifying foreign exchange settlements for new trade entities, and improving service trade prepayment management. SAFE will also promote integrated capital pool systems for multinational corporations and reform the management of funds raised through overseas listings.
Additionally, SAFE will enhance risk prevention under open market conditions by combining macroprudential and micro-supervisory frameworks. The use of artificial intelligence and big data will strengthen monitoring, early warning systems, and enforcement against cross-border financial violations. These initiatives are expected to improve both trade facilitation and regulatory effectiveness in China’s foreign exchange management.
Ensuring Stability in the Financial Sector
The State Administration of Financial Regulation emphasized the need for steady and orderly progress in restructuring small and medium-sized financial institutions. The focus will be on consolidating risk disposal results, managing non-performing assets, and ensuring sufficient capital replenishment. SAFR also highlighted efforts to develop a financing framework aligned with the evolving real estate model and to mitigate local government debt risks. These measures aim to safeguard financial stability and maintain a resilient financial system amid ongoing structural adjustments.
Outlook: A Coordinated Approach to Financial Modernization
The announcements from the 2025 Financial Street Forum reflect a coordinated policy approach to advancing China’s financial modernization. The combined efforts of the central bank and regulatory agencies aim to strengthen market stability, enhance transparency, encourage innovation, and expand international participation. Together, these initiatives represent a significant step toward a more open, resilient, and inclusive financial ecosystem capable of supporting sustainable economic growth in the years ahead.