China's securities regulator released the finalised rules and guidelines to strengthen regulations of commercial banks' wealth management businesses, as the latest move by Beijing to fend off systemic financial risks.
The China Banking and Insurance Regulatory Commission (CBIRC) on Friday released the rules on commercial banks’ wealth management products (WMPs), saying that these WMPs should be managed based on their net value.
Under the new rules, banks' WMP funds are allowed to be invested into the stock market through mutual funds. Previously, they were only allowed to be invested into money market funds and bond funds.
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