Stronger financial supervision

China's central bank and the banking, securities and foreign exchange regulators issued a draft guideline on Friday in order to manage the assets of financial institutions.

China's financial assets management business has been developing rapidly in recent years. However, there is a lack of unified regulatory standards. This has resulted in the emergence of a variety of problems and risks. The promulgation of the draft guideline by the various regulators will bring the sector under unified regulation and promote its sustainable and healthy development.

The bid to tighten the regulations actually began a few days ago. The China Banking Regulatory Commission solicited opinions on stock equity management of commercial banks on Thursday. It also set explicit qualifications for shareholders. The commission also made specific stipulations for the market orientation and risk management of China's three major policy banks the day before. These have been lacking over the past two decades. The China Securities Regulatory Commission also published a revised document on the management of stock exchanges on Friday, aimed at strengthening the regulation of the bourses.