China's draft financial law was deliberated on Tuesday at the ongoing session of the Standing Committee of the National People's Congress, the nation's top legislature, for its first reading, the Xinhua News Agency reported. Analysts view this step as a milestone in strengthening the rule of law in China's financial sector. As the nation's first fundamental, comprehensive, and overarching financial law, the legislation is expected to bolster high-quality financial development and contribute to building China into a financial powerhouse.

The draft law consists of 11 chapters and 95 articles, according to the document published on the websites of the Ministry of Justice, the People's Bank of China, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange. It sets out provisions on the direction and overall requirements of financial work, a modern central bank system, regulation of financial institutions, financial products and services, financial market regulation, risk disposal mechanism, and legal liabilities.

This legislative push is a concrete step to translate high-level blueprints into actionable institutions, underscoring China's determination to align legal frameworks with the country's financial blueprints, Cao Heping, a professor at the School of Economics of Peking University, told the Global Times on Tuesday.

A close reading of the draft reveals that the financial law emphasizes coordinated development and security, focuses on resolving legal challenges that hinder high-quality financial development, and prioritizes strong regulation, risk prevention, and the promotion of high-quality development, Cao said.

These priorities are reflected in the multi-year legislative timeline now unfolding. The Central Financial Work Conference held in October 2023 stressed that all types of financial activities should be placed under regulation according to the law. In July 2024, the 3rd plenary session of the 20th Central Committee of the Communist Party of China set out the tasks of formulating a financial law. In March 2026, the draft financial law was released for public feedback.

"The law will provide the essential institutional cornerstone for the building of China into a financial powerhouse," Tian Lihui, dean of the Institute of Financial Development at Nankai University, told the Global Times on Tuesday.

First, at the institutional level, the country's financial sector will achieve a leap from "fragmented patching" to "system building," unifying the regulatory framework to improve the effectiveness of governance. Second, at the practical level, it will establish a risk disposal mechanism to build a legal defense line of "strong regulation and risk prevention." Third, at the strategic level, it will provide a predictable institutional guarantee for a strong financial nation with the authority and stability of the law, and development-oriented provisions will stimulate innovation, Tian said.

Since the start of reform and opening-up, China's financial sector has made historic achievements. Notably, since the 18th National Congress of the CPC, the country has advanced financial reform and development while effectively managing risks in an orderly fashion.

"The depth and breadth of China's financial market have significantly improved, and its international status and influence have achieved rapid development," PBC Governor Pan Gongsheng said at the 2026 Lujiazui Forum in Shanghai on June 17.

There are more than 5,500 A-share listed companies in China, with total market capitalization exceeding 110 trillion yuan ($16.24 trillion), ranking second globally. Meanwhile, China's bond market has exceeded 200 trillion yuan, ranking second in the world. From initially conducting transactions in only a few currencies, China's foreign exchange market now covers more than 40 foreign currencies from major global economies, with an annual trading volume exceeding $42 trillion, according to Pan.