China Banking Regulatory Commission (CBRC) has reportedly banned wealth managers and trust companies from investing in pooled money to rein in shadow banking.
Caixin Online quoted CBRC saying that trust companies and wealth managers cannot maintain a ‘capital pool,’ which typically forms when funds collected from investors of different trust products or wealth management plans are kept together to provide capital for investments.
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The CBRC also said that it would work in cooperation with other central government departments to develop a unified regulatory framework for small-loan companies that cater to the financing needs of small and family businesses.
The regulator added that loan guarantee companies must not take on too much leverage.
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