BEIJING, Dec 3 - The National Financial Regulatory Administration (NFRA) of China announced on Sunday its plans to expedite the reform of small and midsize financial institutions as part of its efforts to enhance oversight of the sector. The move aims to strengthen market order and effectively manage significant financial risks.

In an interview with state media Xinhua, NFRA director Li Yunze revealed that the regulatory body will collaborate with the General Administration of Financial Supervision to tighten supervision over the non-securities financial industry. This partnership will specifically target individuals and behaviors that pose major financial risks and undermine market stability. Li emphasized the need to address the activities of illegal third-party intermediaries.

The NFRA, which operates as the watchdog for China's vast $57 trillion financial sector, will work alongside other relevant departments to focus on optimizing the structure, improving the quality, and enhancing the efficiency of small and midsize banking institutions. This move aims to bolster financial stability and resilience.

Furthermore, Li emphasized the need for insurance companies to return to their original function of providing protection and guidance for asset management, non-banking, and other institutions to adhere to their respective roles.

Li reassured that the current operation of China's financial sector remains stable and possesses strong overall risk resistance. He expressed full confidence in the ability of the NFRA and other entities to leverage reform and development, effectively manage financial risks, and respond to challenges.

"We are fully confident and have the conditions and ability to increase vitality through reform, solve problems through development, and properly respond to the challenges of various types of financial risks by increasing the volume of inventory," Li stated.

The reform initiatives announced by the NFRA reflect China's ongoing commitment to ensuring the stability and soundness of its financial sector. By strengthening oversight, optimizing institutions, and addressing key risks, China seeks to enhance market order and safeguard long-term financial stability.