China's central bank will tighten1 supervision2 of shadow banking3 by including wealth management products (WMPs) into its risk monitoring system next year.
中国人民银行将于明年加强对影子银行的监管,将其理财产品纳入风险监测体系。
The People's Bank of China on Monday confirmed media reports that it would add WMPs to its checklist for financial institutions under the macro prudential
assessment4 (MPA) framework in the first quarter of 2017.
The MPA currently covers loans and other assets including investment on bonds and
equities5.
China's fast expanding wealth management industry is considered a source of risk, as off-balance sheet WMPs channel deposits into
risky6 investments without enough regulation.
The government will put more emphasis on controlling financial risks in 2017, according to the Central Economic Work Conference, a key economic meeting held last week.