Clifford Beaumont – China continues campaign to crack down on misconduct within its financial sector.
TAIPEI, TAIWAN, May 03, 2018 /24-7PressRelease/ — A source close China’s central bank revealed that China will unveil new asset management industry regulations within the next week.
Clifford Beaumont analysts say markets have been waiting patiently for the release of the official version of new regulations to govern China’s $15 trillion asset management industry as part of an effort to mitigate risk within China’s financial sector.
The new regulations were approved by President Xi Jinping and other governing officials last month.
President Xi Jinping’s official endorsement is the first move from China’s governing officials in trying to combat financial risks after the country overhauled its financial regulatory system and established a new team to oversee its monitoring.
Clifford Beaumont analysts say that after some revision to the draft rules, the new regulations could be announced sometime this week. They stated that before the regulations are implemented, there will be a strong need for further clarification with regards to guidelines and other pertinent issues.
The new official regulations are expected to eliminate gaps that permit regulatory arbitrage and restrict shadow banking activities. They will make up a series of measures the government plans to implement in an effort to limit debt and risks and better govern the financial industry.
Earlier this month, Clifford Beaumont analysts reported that the People’s Bank of China began a two month investigation into online wealth management companies.
China also recently decided to establish a new financial court in Shanghai. Although this court has not yet begun operations, it emphasizes China’s commitment to clamp down on asset managers operating unlawfully and out of the bounds of regulations.
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