China to go it slow with new shadow banking rules
The central bank is examining the market impacts of stricter regulations on China’s shadow banking sector
Speaking at an economic forum in Washington, People’s Bank of China (PBOC) chief economist Ma Jun said that the rebounding economy has given regulators room to move ahead with structural reforms, reports Bloomberg.
But he added that new regulations to the country’s shadow banking sector, which by some estimates manages assets greater than three-quarters of China’s US$11 trillion economy, will come slowly as regulators study potential market impacts.
“The central bank is seeking to calm the market and doesn’t want it to over-interpret the regulations or act on sentiment,” Bloomberg quoted Ming Ming, a former PBOC official as saying. Ming, who is now head of fixed-income research at Citic Securities added “still, Ma’s comments don’t mean there will be a weakening in the regulatory transition toward curbing risks.”