China has unveiled a sweeping upgrade to the regulatory framework governing financial infrastructure (FIs), aiming to prevent systemic risks and align its oversight with global standards. On August 6, the People's Bank of China released the finalized version of the Administrative Measures for Financial Infrastructure Supervision, following a two-year drafting and consultation process. The new rules, effective from October 2025, establish a unified legal definition of financial infrastructure, covering key institutions such as central clearinghouses, trading platforms, bond registration agencies, and critical payment systems. This marks the first time China has implemented a full-scale institutional supervision framework tailored to these “core nodes” of its financial system.

The updated framework underscores Beijing's growing concerns over data monopolies, systemic vulnerabilities, and fragmented oversight. Under the new measures, the central bank assumes lead regulatory responsibility, including licensing, ownership approval, and business scope reviews for FIs. It will coordinate with the securities and banking regulators to oversee specific functions. Importantly, the rules prohibit entities from engaging in duplicate FI functions, curb abuse of market dominance, and set caps on equity holdings to prevent concentrated control. In addition, cross-border ownership, outsourcing, and data sharing must comply with national security and data governance requirements.

At the heart of the new regime is a push for stronger governance, resilience, and international alignment. Operators must establish independent boards, internal controls, and risk management frameworks that meet Financial Stability Board and CPMI-IOSCO standards. To address operational risks, the measures mandate minimum capital thresholds, “real-time, all-weather” continuity plans, and multiple-site disaster recovery systems. Annual performance reviews will assess infrastructure adequacy in terms of safety, fairness, efficiency, and compliance—placing greater accountability on board members and senior management.

Market structure and innovation are also under sharper supervision. The rules introduce procedures for launching new FIs, adjusting ownership structures, and terminating existing ones. For digital infrastructure, including blockchain and token-based platforms, regulators will apply a “substance over form” approach—ensuring all systemically important functions, regardless of technology, fall under the supervision net. Financial institutions will be obligated to report reliance on critical third-party infrastructure and may face restrictions if risk controls are inadequate.

As China deepens its capital market reforms and cross-border openness, modernizing the foundations of its financial system is taking center stage. The new oversight regime not only enhances China's ability to manage shocks and promote fair competition but also signals its intent to play a more active role in global financial rulemaking. For international firms and investors, the message is clear: participation in China's markets will increasingly require alignment with a maturing and more robust regulatory architecture.