PBOC issues new asset management rules

China's central bank issued the final version of the tightened asset management regulations on Friday, forbidding guarantee of investment products' fixed-yield returns and limiting leverage levels to curb potential financial risks.

The new policy will take effect after a transition period by the end of 2020, one and a half years longer than the proposed version, to ensure sufficient preparation for financial institutions and avoid market vulnerability, according to a statement on the website of the People's Bank of China.

Compared with the proposal released in November, the final version also eased restrictions on the assessment method of invested financial asset value, allowing some to maintain the previous method on the basis of the post-amortization costs, but to encourage using the market value, it said.