China’s financial superpower ambitions get legal backing at ‘two sessions’

China will develop a new financial law and a dedicated financial stability law this year, as Beijing works to defuse risks and prevent new ones as part of its ambition to become a financial superpower.In its work report delivered on Monday, the National People’s Congress Standing Committee, the country’s top legislative body, said it would also amend existing laws, including the People’s Bank of China Law and the Banking Supervision and Management Law.The work report outlined a broad legislative agenda for 2026.Fu Weigang, president of the Shanghai Institute of Finance and Law think tank, said the financial law was likely to be a comprehensive, overarching framework covering all aspects of finance and turning Beijing’s grand vision into enforceable rules.“There may be clauses on financial reform, serving the real economy, inclusive finance, green finance, the yuan’s role and anti-corruption,” he said, adding that the process could be lengthy since various stakeholders would be involved.At the twice-a-decade central financial work conference in October 2023, officials first proposed a national strategy to turn China into a global financial superpower, in line with its status as the world’s second-largest economy.In a 2024 speech, President Xi Jinping laid out six targets to become a financial powerhouse: a strong central bank, robust regulations, sound financial institutions, a deep talent pool, leading international financial centres and the yuan achieving global reserve currency status.