New CSRC Boss Has Voiced Concern about Banks' Wealth Management Products

(Beijing) – The new chairman of the China Securities Regulatory Commission (CSRC) has been known for his concerns about the rise of banks' wealth management products, going so far as to say some were like Ponzi schemes.

Xiao Gang, who took over from Guo Shuqing on March 17, is a vocal critic of banks wealth management products. In a commentary published by the English-language China Daily in October, he called the pooling of investor capital through wealth plans that are not individually assessed an example of "shadow banking."