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20:42, 09-Dec-2017
China’s banking association: No objection to new asset rules
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The China Banking Association (CBA) has denied reports that ten banks have sent a joint petition opposing changes to asset management rules.
The CBA's response came late Friday on its website.
China’s regulators, led by the central bank, last month set out sweeping draft guidelines to curb risks in the nation's asset management products which are worth 15 trillion US dollars.
Subsequent media reports said that several Chinese joint-stock banks objected to the proposals and claimed the new rules might cause big pressure on financial institutions or even systemic risks.
But the CBA said that the reports were “untrue." It added that the association is organizing discussion on the new regulations.
The regulators have proposed that financial institutions should break an implicit guarantee of principal repayment or rate of return, and reflect the risks and returns of the underlying assets.