The State Administration of Financial Supervision: Since 2024, more than 5,600 non-compliant institutions have been cumulatively removed.

A message from the National Financial Regulatory Administration: Since 2024, the National Financial Regulatory Administration has guided various regions to deepen the special standardization and rectification efforts for six types of local financial organizations, including microloan companies, financing guarantee companies, pawnshops, financial leasing companies, commercial factoring companies, and local asset management companies. Authorities have vigorously phased out non-compliant institutions such as those that are “disconnected” and “shell companies,” as well as entities engaging in serious violations of regulations, and have strictly addressed market disorder such as excessively high interest and fee charges, disguised multiple charging, and improper debt collection practices. Local authorities have improved and strengthened regulatory mechanisms, enhanced inter-departmental coordination and linkage, and used measures such as publicizing non-compliant institutions, canceling business operating qualifications, implementing credit sanctions, and phased withdrawals, to continuously improve the industry’s ecosystem and achieve positive results. By the end of December 2025, the number of the six types of local financial organizations had decreased by 26% year-on-year, and fell by 55% compared with the historical peak. Since 2024, a cumulative total of more than 5,600 non-compliant institutions have been phased out. (CCTV News)