China’s latest plan to rein in its shadow banking system is winning early plaudits from analysts, despite concern that it could fuel short-term market turbulence.
The country’s financial watchdogs unveiled a proposal on Friday to overhaul regulation of asset-management products, which hold about $15 trillion and are seen as threats to stability in Asia’s largest economy. The draft rules, set to take effect in 2019 after a consultation period, mark the “beginning of a new era” in Chinese financial supervision, according to Citic Securities Co.
