China tightens rules on asset management products

BEIJING: China’s central bank has issued draft guidelines to tighten regulations on financial institutions’ asset management business, a key component of the country’s rampantly growing shadow banking sector.

The new guidelines unified top-level regulations for asset management products issued by banks, trust firms, insurance asset management companies, securities firms, funds and futures companies, the People’s Bank of China said in an online statement issued jointly with the country’s banking, insurance, securities and foreign exchange regulators.