China Takes ‘More Flexible Way’ on Wealth Products Rule Changes
- Supervision of $15 trillion industry not as strict as feared
- Policy makers continue their campaign against shadow banking
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China’s regulators took a softer stance than expected as they tightened rules around the $15 trillion asset management industry, underscoring the balancing act between deleveraging the financial system and slowing an economy already facing challenges.
The People’s Bank of China released guidelines late Friday aimed at asset management products, soon after the banking and securities regulators published their own rules on specific wealth products. The regulations, aimed at shrinking China’s sprawling shadow-banking system, were less severe than industry participants and observers had feared, a recognition by policy makers of economic strains that have emerged in recent months.