New rules for China asset management due soonBusiness | 25 Apr 2018 1:53 pm
China is "days away" from unveiling new rules governing its asset management industry, the official China Daily reported today, citing an unnamed source close to the People's Bank of China, Reuters reports.
Markets have been awaiting the release of the final version of new rules for the US$15 trillion asset management sector as part of a crackdown on risk in the financial system.
President Xi Jinping and other top officials approved the new rules in March.
"After some banks' lobbying and the possible revision of the proposed regulation, the new rules could be released as early as this week," the China Daily quoted "an anonymous source close to the central bank" as saying.
"But I think with the regulation taking effect, many basic matters and details need to be further clarified in terms of guidelines, including reassessing the scale of standard credit assets and their appropriate value assessment methods."
The rules are expected to close loopholes that allow regulatory arbitrage, reduce leverage levels to curb asset price bubbles, and rein in shadow banking activity, Reuters reports.