The National Financial Regulatory Administration (NFRA) of China is set to expedite reforms of small and midsize financial institutions, intensifying supervision of the financial sector beyond the securities market. This was announced by Li Yunze, NFRA’s director, in a Xinhua interview. The NFRA, which oversees China’s USD57tr financial sector, will focus on mitigating major financial risks and maintaining market order, targeting illegal third-party intermediaries. Li mentioned utilising current opportunities to enhance risk management efforts. The initiative will drive small and midsize banks to optimise their structures and improve efficiency. Additionally, insurance companies will be encouraged to refocus on their core role of protection, while asset management and non-banking institutions will be guided to stay true to their fundamental functions.