A key document outlining China’s financial industry policy for the next five years has been released, identifying corporate financing and oversight as fundamental threats to be tackled.
The 13th five-year plan released by China’s central bank promises to intensify the ongoing crackdown on shadow banking by creating a more sophisticated oversight infrastructure. Asset managers will be subject to deep regulatory measures designed to home in on the major causes of risk in the system, Caixin reports.
The plan goes on to mention new rules requiring greater oversight on behalf of financial conglomerates to monitor their own risk levels, capital adequacy, and corporate governance. Investment in financial firms, especially from non-financial companies, will be heavily restricted so as to prevent funding stemming from illegal sources.