China's Bolstering Lenders for New Assault on Shadow Banking
- Central bank presses ahead with interest rate deregulation
- Regulators accelerate crackdown on wealth management products
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Investors who pushed up Chinese bank shares last week on news of lower reserve requirements may have been celebrating too soon.
The subtext to Tuesday’s move is an effort to prepare the banks for a painful new phase in China’s campaign to reduce financial-sector risks, as regulators free up deposit rates and accelerate their crackdown on the nation’s $16 trillion shadow banking sector.