Asia Capital Group is pleased to announce the publication of a new academic article by its Senior Consultants, Dr Lerong Lu and Dr Ci Ren, titled “Lender of Last Resort in China: Operating Mechanism, Legal Foundation, and the Financial Stability Implication.” The article has been published in the Asia Pacific Law Review, and a related commentary has also been featured on the Oxford Business Law Blog under the title “Why China’s Lender of Last Resort Regime Needs Clearer Limits,” published on 31 March 2026.

The publication examines the legal and institutional foundations of China’s lender of last resort regime, with particular focus on the role of the People’s Bank of China, the broader architecture of China’s financial safety net, and the implications for financial stability. The authors argue that while emergency liquidity support remains an essential safeguard in times of crisis, its credibility depends on clearly defined legal boundaries, disciplined use, and appropriate institutional limits.

Drawing on comparative perspectives from major financial jurisdictions, including the United Kingdom and the United States, the article contributes to wider debates on the design of credible financial safety nets in large and evolving market systems. It highlights the importance of distinguishing lender of last resort support from wider state rescue functions, depositor protection, and routine institutional support.

This publication reflects the strong research and policy expertise within Asia Capital Group’s advisory network. Both authors serve as Senior Consultants to the firm, contributing specialist insight in the fields of financial regulation, corporate law, and international legal and policy development. Asia Capital Group is proud to see its consultants contributing to internationally recognised scholarship and policy debate on issues of global financial significance.

The Oxford Business Law Blog commentary introduces the paper’s central claim: that a credible lender of last resort regime promotes financial stability not by maximising intervention, but by constraining it through clearer conditions, limits, and accountability. The publication is expected to be of interest to academics, regulators, policymakers, and market participants concerned with financial governance and institutional reform in China and beyond.

The full paper is available at Taylor & Francis: https://www.tandfonline.com/doi/full/10.1080/10192557.2025.2493702

The featured blog on Oxford Business Law Blog: https://blogs.law.ox.ac.uk/oblb/blog-post/2026/03/why-chinas-lender-last-resort-regime-needs-clearer-limits