China released a draft of its first fundamental law governing the financial sector on Friday, offering a top-level legal framework for the entire sector and marking a key step toward building a financial powerhouse.

The draft financial law, jointly issued by the Ministry of Justice, the People's Bank of China and other top financial regulators, has been opened to public consultation until April 19.

As the country's first overarching and fundamental law in the financial sector, the draft aims to comprehensively enhance regulation, prevent and defuse financial risks, and promote high-quality development, according to a statement released by the central bank.

The draft, comprising 11 chapters and 95 articles, sets out overarching requirements for financial work, including upholding centralized leadership and a people-centered approach, while defining the legislative goal of building a strong financial system to support Chinese modernization.

It also outlines measures to modernize the central banking system, improve macro-prudential management, and ensure currency and financial stability.

Provisions are included to regulate financial institutions across their full lifecycle, strengthen the compliance of financial products and services, and enhance the mechanisms to support financial market stability.

The draft further emphasizes strengthening financial oversight, enhancing consumer and investor protection, improving risk disposal mechanisms, and strengthening accountability, all underscoring China's commitment to safeguarding against systemic financial risks.