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[According to incomplete statistics from the First Financial Daily, the total number of local financial organizations in the 7 categories of the "7+4" nationwide exceeds 20,000. Among them, according to the website of the People's Bank of China, as of the end of June 2024, there are 5,428 microfinance companies nationwide.]

Recently, the industry reported that the State Financial Supervision and Administration Bureau, China Securities Regulatory Commission, State Administration for Market Regulation and other three departments jointly issued the "Notice on Further Strengthening the Supervision of Local Financial Organizations" (hereinafter referred to as the "Notice"). Yicai Finance confirmed this from the local regulatory authorities, and the "Notice" has not been made public.

An industry insider familiar with the relevant content revealed to China Business News that the "Notice" highlights the working principles of "central and local coordination, strict supervision; reducing quantity and improving quality, implementing policies in a classified manner; and advancing in a steady and orderly manner and in steps." The goal is to achieve an orderly reduction in the number of institutions and effectively curb operational chaos.

The above-mentioned industry insiders said that this also means that the "7+4" local financial organizations have entered an era of strong supervision and their number will continue to decrease.

Local financial organizations are gradually brought under supervision

Over the past decade, local financial institutions have developed rapidly and played an important role in serving the regional real economy and financing small and medium-sized enterprises. However, in the early years, local financial organizations were subject to multiple supervision for a long time, which not only resulted in low supervision efficiency, but also made it more likely for supervision gaps to occur.

As a result, local financial organizations have been gradually brought under the supervision scope in recent years. In 2017, the "Several Opinions on Serving the Real Economy, Preventing and Controlling Financial Risks, and Deepening Financial Reform" clearly stipulated for the first time that the "7+4" types of local financial organizations should be handed over to local supervision.