Date
20 October 2017

Rules tightened for asset management business, paper says

China will tighten regulatory standards for securities firms’ asset management business, including the banks they deal with, product design, risk control and due diligence, Shanghai Securities News reported Wednesday, citing a notice issued by the Securities Association of China. Banks that work with securities firms on the business must have at least 50 billion yuan (US$8.24 billion) of assets at the end of the last fiscal year, up from 30 billion yuan, and capital adequacy ratio of at least 10 percent, according to the notice. The association will conduct on-site inspects in relation to the new rules, which will take effect from Feb. 17, the report said.

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TL/AC/CG

 

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