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Asset Managers See No Gain, Only Pain in Proposed Rules

By Wu Hongyuran and Leng Cheng
Despite growing complaints from banks, Chinese regulators are determined to get the asset management sector in line, even if it causes some pain. Photo: Visual China
Despite growing complaints from banks, Chinese regulators are determined to get the asset management sector in line, even if it causes some pain. Photo: Visual China

China’s commercial banks are pushing back against recently proposed regulations for the country’s asset management industry, saying that the regulations will aggravate the very problem they are supposed to solve. But Chinese regulators aren’t budging.

The stakes are high in this ongoing debate between regulators and players in the country’s $15 trillion asset management industry. Commercial banks, which are also the country’s most profitable companies, have issued nearly 30 trillion yuan ($4.7 trillion) in asset management products, pouring much of that money into the mammoth, opaque and far-less-regulated “shadow banking” sector.

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