CSRC Tightens Rules Governing Subsidiaries of Fund Management Firms

(Beijing) — Chinese securities regulators have laid out new regulations that govern subsidiaries of fund management firms — an attempt to further rein in the growth of "shadow banking."

After seven months of public review, the China Securities Regulatory Commission (CSRC) has unveiled regulations that introduce capital controls to limit the expansion of high-risk businesses. The new regulations take effect on Dec. 15, and an 18-month grace period has been granted to allow fund management firms' subsidiaries to adjust their businesses and conform to the new rules.