China’s banking regulator has issued new rules for the country’s Rmb 21 trillion ($3 trillion) wealth management industry, Caixin reports, which has been a target of heightened scrutiny amid a build-up of risky shadow lending activity in recent years.
The rules, designed to “remove uncertainties and stabilise market expectations”, would establish a centralised supervisory system for banks’ wealth management business, prohibit implicit guarantees against losses and increase safeguards for investors, according to the China Banking and Insurance Regulatory Commission (CBIRC).
If approved, the draft list will be effective as of January 1, 2021. The highly-anticipated new rules were delayed by several weeks due to the recent poor performance of China’s capital markets and currency, sources told Caixin.
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