A senior central bank official has called for tighter regulation of wealth management products, which have grown into a 12.8 trillion yuan (US$2.1 trillion) market by the end of May, the official Xinhua News Agency reported.
Pan Gongsheng, vice governor of the People’s Bank of China, told a forum in Qingdao in eastern China’s Shandong province over the weekend that regulation of the market should be strengthened to control risk and push forward the healthy development of the sector.
The market had been increasing between 60 and 80 percent annually for a few years before it slowed to 30 to 40 percent in 2013, Pan said.
He said authorities want to ensure that the value of people’s financial assets are preserved and increased.
This is not only a financial issue, but a major economic and social issue, as it involves the readjustment of the income distribution system and economic restructuring, Pan was quoted as saying.
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