With Country Garden and Zhongzhi in distress, institutional investors and economists explain why they don’t foresee a financial crisis.
Tag : shadow banking
Beijing's rescue of the collapsed Baoshang Bank has led some investors to seek out bond investments, relying on the implicit desire of the government to prevent a credit crisis.
Shadow banking activities and wealth management business in China have shown signs of declines, but investors' demands for such products should remain strong.
Minsheng Royal Asset Management, the mainland's second biggest segregated-account subsidiary, has received a six-month ban, as Beijing starts consulting on tighter capital rules.
Proposed rules are expected to further curb the growth of wealth management products in China by restricting the instruments banks can buy, with WMP returns tipped to fall.
Proposed capital rules for the $1.5 trillion fund subsidiaries segment are tougher than expected, as Beijing further turns the screw on the domestic investment and shadow-banking sectors.
While it has served as an alternative financing channel to society at large, it also involves moral hazard and hidden risks. Xie Ping, deputy general manager at CIC, joined the debate.
A European bank regulator's proposals to curb shadow banking have been criticised over the extent to which they could be applied to EU-based asset management firms.
Stock Connect expanded; Iosco, IMF flag shadow banking concerns; MAS readies Fair rules; Australia eyes disclosure regime changes; Pimco faces probe; and Singapore readies for Fatca.
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Joe Zhang, now chairman of Wansui Micro Credit Company, says they are in better shape than many mainstream banks and provide a much-needed social service.
The CBRC says principal and non-principal guaranteed wealth management products issued by banks should not fall under shadow-banking. But this doesn't appear to address the risks.
Fund-of-funds manager Gen2 Partners is targeting AUM of $275 million and an initial close by the end of this year, pointing to an estimated $500 billion shortfall in SME financing in China.
