Financial Market Welcomes New Regulations, Accelerating Industry Transformation and Development

Our reporter Yang Jie

According to the National Financial Regulatory Administration’s announcement on March 16, in order to improve the regulatory system for wealth management companies and promote the development and supervision models that match their capabilities, the Administration recently issued the “Interim Measures for the Supervision and Rating of Wealth Management Companies” (hereinafter referred to as the “Measures”), which took effect immediately upon release.

A responsible official from the relevant department of the National Financial Regulatory Administration stated that it is very necessary to formulate the “Measures” to further clarify the development direction of the wealth management industry, improve the regulatory system for wealth management companies, and promote their continuous capability enhancement. First, it helps strengthen regulatory guidance by leveraging the rating as a “command stick” to urge wealth management companies to establish prudent and steady business philosophies and to fulfill their fiduciary management responsibilities. Second, it accelerates transformation and development by encouraging companies to benchmark industry leaders, identify gaps, continuously strengthen their capabilities, and boost endogenous growth momentum. Third, it facilitates the rational allocation of regulatory resources by better reflecting the risk profile and operational characteristics of wealth management companies through regulatory ratings, clarifying key institutions and areas for regulation, and improving the precision and scientificity of supervision.

Industry insiders believe that the official release of the “Measures” marks an important step toward standardizing and maturing the bank wealth management market, shifting the focus from “scale competition” to “internal strength,” and achieving high-quality development.

Six Major Rating Factors

“Being entrusted to manage others’ assets” is the fundamental principle of the asset management industry, including wealth management. Data disclosed by the National Financial Regulatory Administration shows that by the end of December 2025, there were 32 active wealth management companies nationwide with a total of 30.7 trillion yuan in wealth management products, accounting for 92% of the total market of 33.3 trillion yuan. After more than six years of development, the industry has made positive progress in regulation and transformation, becoming an important part of China’s asset management sector.

“At the same time, it should be noted that some institutions still face issues such as unclear development positioning, insufficient professional investment capabilities, the need for deeper net value transformation, and incomplete risk control,” said a responsible official from the relevant department of the National Financial Regulatory Administration during an interview.

The newly issued “Measures” specify the overall requirements for the supervision and rating of wealth management companies, rating elements, basic procedures, and classification supervision. First, it clarifies the rating elements and methods. The “Measures” set up six rating modules: corporate governance, asset management capability, risk management, information disclosure, investor protection, and information technology, with respective weights of 10%, 25%, 25%, 15%, 15%, and 10%. It also includes targeted scoring items, deduction items, and level adjustment factors to comprehensively evaluate the operation management and risk status of wealth management companies. Second, it clarifies the basic procedures for regulatory ratings, which include self-assessment, preliminary review, verification, and feedback. After the rating, if the regulatory authorities discover significant issues during the rating period or if there are major changes in the risk or management status of the company, they can make dynamic adjustments to the rating results. Third, it emphasizes the principles of classified supervision. The rating results are an important basis for regulatory resource allocation, market access, and implementing differentiated regulatory measures.

In the “Measures,” asset management capability and risk management are weighted the highest (each 25%, totaling 50%). Dong Ximiao, Chief Economist at Zhaolian and Deputy Director of the Shanghai Financial and Development Laboratory, told Securities Daily that asset management capability is the foundation of a wealth management company’s existence. Assigning it the highest weight of 25% reflects the core investment research ability, product design level, and value creation capacity for clients. This directly relates to whether the company can help residents preserve and increase their wealth, serving as the “gold standard” for qualification. A high weight means regulators will scrutinize whether wealth management companies can effectively identify, measure, and control various risks to protect investors’ assets.

“The ‘Measures’ will promote further optimization of corporate governance, enhancement of asset management capabilities, improvement of risk management systems, and steady digital transformation. They will play an irreplaceable leading role in high-quality industry development and indirectly strengthen investor protection,” said Yang Haiping, researcher at the Shanghai Financial and Legal Research Institute, to Securities Daily.

Differentiated Classification Measures

The “Measures” specify that the regulatory rating results are divided into levels 1–6 and S level, with each level clearly indicating the risk characteristics and regulatory measures for wealth management companies. Higher numbers reflect greater risk and require more intensive supervision.

Level 1 and 2 companies are stable in operation with relatively low risk, mainly supervised through non-on-site and routine oversight, with priority support for innovative pilot businesses such as pension wealth management. Levels 3 and 4 companies have certain or multiple risk issues, requiring strengthened supervision in key areas, necessary corrective measures, risk control of new risks, reduction of existing risks, and prevention of risk spread. Levels 5 and 6 companies face serious risk problems, requiring real-time risk tracking, strict restrictions, and risk mitigation measures, with orderly risk disposal or market exit. S-level companies are those undergoing restructuring, takeover, or market exit, and do not participate in the current year’s regulatory rating.

“The rating results are closely linked to the company’s future survival and development space,” said a responsible person from Guangyin Wealth Management to Securities Daily. “Differentiated supervision, with positive incentives and negative constraints, and varying regulatory treatments for different levels, are core variables determining their operational space and growth trajectory.” Dong Ximiao added that the rating results will influence and determine a wealth management company’s future prospects. Companies with weak research capabilities, poor risk control, and chaotic governance will find it difficult to survive, while leading stable institutions will gain more development resources. The rating method also emphasizes information disclosure and investor protection. Although the rating results are not publicly disclosed, the regulatory constraints behind them will encourage wealth management companies to operate more prudently, helping to safeguard investors’ rights.

(Edited by: Qian Xiaorui)

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