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Introduction
On March 20, 2026, five ministries including the Ministry of Justice, People’s Bank of China, State Financial Regulatory Administration, China Securities Regulatory Commission and State Administration of Foreign Exchange jointly issued the Draft Financial Law of the People’s Republic of China for public comment. As China’s first foundational and overarching law in the financial sector, the Draft marks a new stage in the development of financial rule of law. To this end, the Finance Practice Group and Financial Industry Group of Dacheng Beijing Head Office organized senior partners to conduct a comprehensive and systematic professional review of the Draft. Based on thorough theoretical and practical analysis, they formulated detailed amendment proposals and reasoning, and submitted the In‑depth Interpretation and Amendment Proposals on the Draft Financial Law of the People’s Republic of China to the Ministry of Justice via public channels on April 2, providing professional input for national financial legislation and contributing Dacheng’s expertise to financial rule of law development.
Report Summary
The In‑depth Interpretation and Amendment Proposals on the Draft Financial Law (the “Report”), submitted to the Ministry of Justice, totals over 50,000 words and was jointly compiled by dozens of senior partners from Dacheng Beijing Head Office’s Finance Practice Group and Financial Industry Group. Drawing on extensive practical experience and profound theoretical knowledge in financial legal services, the team conducted multi‑dimensional analysis of the Draft. The Report is professional, systematic and practical, providing strong professional support for the national financial legislation process.
The Report first outlines the legislative background and significance of the Draft, confirming that it responds to the deepening development of China’s financial market and addresses regulatory pain points under the separate legislation model. It represents a milestone in filling foundational legal gaps, enhancing regulatory coordination, improving risk prevention and advancing high‑quality financial development. The Report further interprets the 11 chapters of the Draft, precisely analyzing its innovative provisions and practical value in establishing the fundamental legal framework for financial governance, modern central banking, full‑cycle financial institution oversight, strengthened financial regulation, improved risk resolution mechanisms and balanced financial development and security.
As the core of the Report, the team conducted an article‑by‑article review of the Draft. Combining financial practice scenarios and legal application challenges, it proposed specific revisions for all 95 articles from both theoretical and practical perspectives, with clarified wording and detailed reasoning. The proposals focus on enhancing legislative purposes, clarifying application scope, strengthening financial consumer and investor protection, regulating regulatory mechanisms, refining risk resolution procedures and improving the enforceability of legal liabilities. Supplementary structural suggestions are also provided on cutting‑edge issues including financial innovation regulatory sandboxes, cross‑border regulatory cooperation, financial data security and industry restriction systems.
Furthermore, based on the article‑by‑article review, the Report puts forward six overarching recommendations: explicitly including financial consumer and investor protection in the legislative purposes; establishing the priority application of the Financial Law as a foundational statute; clarifying the scope of financial institutions and applicable rules; introducing a financial innovation regulatory sandbox regime; improving cross‑border regulatory cooperation provisions; and refining the scale and discretion standards for legal liabilities. These provide clear guidance for legislators to further refine the Draft.
The Report concludes that the drafting of the Financial Law represents a critical step in China’s financial rule of law development from “sector‑specific legislation” to “foundational integration”. The Draft is systematic, innovative and practical, meeting the requirements of high‑quality financial development and rule of law in the new era. The team also recommends accelerating supporting regulations, strengthening financial legal training and enhancing regulatory enforcement to ensure the Law fulfills its foundational role upon enactment, laying a solid legal foundation for building a leading financial power.
Message
Dacheng’s active participation in this legislative advisory work reflects its professional expertise and sense of responsibility in financial legal services. It also represents an important collaborative practice between the Finance Practice Group and Financial Industry Group of Dacheng Beijing Head Office in supporting national financial rule of law development.
Going forward, the Finance Practice Group of Dacheng Beijing Head Office will continue to take a professional leading role, organizing partners to monitor financial legislative developments and contribute proactive suggestions, dedicating Dacheng’s expertise to the advancement of financial rule of law.
This Report was compiled by the Finance Practice Group and Financial Industry Group of Dacheng Law Offices Beijing Head Office. Compilers are listed below (sorted by Pinyin):
Senior Partners / Senior Counsel: Duan Xiaobo, Guo Lulu, Guo Qing, Huang Lijun, Jian Ying, Li Aiwen, Liu Fei, Liu Haiping, Liu Tao, Liu Xinde, Liu Yang, Ping Yunwang, Tang Huan, Wang Libo, Wang Lihong, Wang Wenquan, Wang Xinsheng, Wang Zilong, Wu Libei, Xiao Jun, Xiao Sa, Xue Jing, Yang Qinqin, Yu Hui, Yu Zailing, Yu Yingjie, Zhang Gang, Zhang Jun, Zhang Wei, Zhou Yao.
Partners: Jia Xiujuan, Li Mingguo.
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