China Clampdown Signals ‘New Era’ for $15 Trillion in Funds
- China announced new asset-management product rules on Friday
- Once adopted, the regulations will end implicit guarantees
This article is for subscribers only.
China’s latest plan to rein in its shadow banking system is winning early plaudits from analysts, despite concern that it could fuel short-term market turbulence.
The country’s financial watchdogs unveiled a proposal on Friday to overhaul regulation of asset-management products, which hold about $15 trillion and are seen as threats to stability in Asia’s largest economy. The draft rules, set to take effect in 2019 after a consultation period, mark the “beginning of a new era” in Chinese financial supervision, according to Citic Securities Co.