Six types of local financial institutions have achieved positive results in reducing quantity and improving quality, with over 5600 non-compliant institutions shut down.

Since 2024, the China Banking and Insurance Regulatory Commission has been guiding local authorities to intensify the special rectification of six types of local financial institutions, including small loan companies, financing guarantee companies, pawnshops, financing leasing companies, commercial factoring companies, and local asset management companies. Efforts have been made to vigorously eliminate "disconnected," "shell" and seriously non-compliant institutions, and to strictly regulate market anomalies such as excessive interest and fees, disguised multiple charges, and improper debt collection. By the end of December 2025, the number of these six types of local financial institutions had decreased by 26% year-on-year, a 55% decrease compared to the historical peak. Since 2024, more than 5600 non-compliant institutions have been cleared.