The wealth management business in Chinese banking should not be categorized as shadow banking because such activity is covered by a separate regulatory and supervisory framework, a senior official of China’s banking regulator said.
Yan Qingmin, vice-chairman of the China Banking Regulatory Commission told Xinhua News Agency, that wealth management business also has clear legal status, presents controllable liquidity risks, provides sufficient disclosure and undertakes no involvement in high-leverage operations.
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However, some wealth management business that eludes supervision is similar to shadow banking activity — and regulators must remain alert, he was further quoted as saying.
As of 30 September 2013, outstanding bank WMPs totaled CNY9.9 trillion (US$1.63 trillion), the news agency reported quoting the CBRC data.
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