Four China Regulators Acting as One Shows Shift in Curbing Risk

  • ‘Regulatory arbitrage’ fueled rampant growth of risky products
  • Better coordination could make it harder to get around rules

Why China's Regulators Are Showing a Unified Front

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China’s regulators are putting together a unified front seeking to beat back growing risks to the financial system from $8.7 trillion in asset management products, including investments in bonds and risky off-balance-sheet lending by banks.

They’re working to draft sweeping new rules governing the surge in these products, Bloomberg News reported earlier this week and a regulator confirmedBloomberg Terminal Wednesday.