China to support troubled financial firms, curb property risks

The regulator will introduce measures to eliminate bad loans and promote mergers, capital injections and the restructuring of high risk institutions, the China Banking and Insurance Regulatory Commission said in a statement Friday.

SHANGHAI: China’s financial regulator said it will implement a series of measures to shore up the nation’s troubled smaller banks and insurers while continuing a clampdown on shadow financing and property speculation.

The regulator will introduce measures to eliminate bad loans and promote mergers, capital injections and the restructuring of high risk institutions, the China Banking and Insurance Regulatory Commission said in a statement Friday. Other steps include setting up a resolution fund and bridge banks while introducing new investors and allowing market-oriented exits.