China's central bank out with draft guidelines to new regulations 17 Nov
- financial institutions will be punished for providing implicit guarantees for asset management products
- fin insts need to provision 10% of asset management products fee income as risk reserves
- fin insts not allowed to use asset management products to invest in commercial banks' credit assets
- forbids fin insts from conducting asset pools to manage asset man products
- will control leverage levels for asset man products to curb asset price bubbles
- non-fin inst not allowed to issue or sell asset man products
- buffer period for new regulations will be until 30 June 2019
All part of China's attempts to balance growth/expansion of financial markets and liquidity/risk fallout.
"We going to have to fill in a few more forms then?" " Search me, I get confused by it all too"
