China shuts down over 5,600 non-compliant financial institutions since 2024

BEIJING, March 19 (Xinhua) -- Over 5,600 non-compliant financial institutions in China have been shut down since 2024, official data showed on Thursday.

The number of six categories of local financial organizations in China fell 26 percent year on year by the end of December 2025, down 55 percent from its historical peak, according to the National Financial Regulatory Administration.

The six categories include micro-lending companies, financing guarantee companies, pawnshops, financial leasing companies, commercial factoring companies, and local asset management companies.

China has been intensifying efforts to advance targeted rectification of the six types of local financial organizations since 2024, eliminating non-compliant institutions that were "out of contact," operating as "shell companies," or seriously violating regulations, while strictly addressing market irregularities.