Asset managers enter new era

Tighter regulation aims to mitigate financial risks, protect investors, safeguard growth MA XUEJING AND SU JINGBO / CHINA DAILY

The PBOC is aiming to unify rules covering asset management products issued by various financial regulators in the past.

The new rules, which have been drafted since late 2016, became necessary as the segment’s growth threatened to snowball into a systemic risk imperilling not only the credit scene but the larger economy.

Experts said tighter regulation is also aimed at improving market transparency and disclosure norms for complex asset management products. This, they said, would help reduce contagion risks from asset management companies

market size in 2016 Share of shadow banking assets in the overall banking system in 2010 Share of shadow banking assets in the overall banking system in 2016 shadow banking assets as share of China’s total financial assets in 2017