Tighter asset management rules 'days away'

Policymakers cautious about giving go-ahead due to product proliferation

The final countdown for the debut of China's tightened asset management regulation has begun, with a possible launch by the weekend, which would restrict banks from investing in high-risk and short-term funding vehicles and further ease financial vulnerability, sources said.

But signals have shown that Chinese policymakers are cautious about giving the final go-ahead, due to the proliferation of asset management products that included around 29.54 trillion yuan ($4.68 trillion) of bank-issued wealth management products by 2017. In addition, any indiscreet move without strengthening financial institutions' liquidity and capital buffers could inadvertently raise stability risks, said experts.