Top regulator urges banks to act on risks

China's top banking regulator on Wednesday urged banks to draft new rules on their wealth and asset management businesses and to more tightly control risky leveraged investments.

Guo Shuqing, chairman of the China Banking Regulatory Commission, said the regulator will step up efforts to ensure funds raised from the wealth management products support real economic activity and prevent risks from the mismatching of banks' assets and liabilities, as well as risky leveraged investments.

Guo made the comments in a speech at a meeting of the China Banking Association. The association released a report on service improvements in the Chinese banking industry, which coincided with World Consumer Rights Day.