China's banking regulator will work with other financial authorities on a unified regulation to better supervise off-balance sheet wealth-management products while it vows to crack down on the country's shadow banking sector, the new chairman of the China Banking Regulatory Commission said yesterday.
"Banks, trust companies, fund-management companies, brokerages and insurers all have asset-management business but they face different regulators and regulations," Guo Shuqing said during a press conference in Beijing.
"There has been some chaos caused by that," Guo said.
He noted that the CBRC is looking at joint regulations for asset-management products in a bid to set a basic standard for each institution, while the country's insurance regulator and securities regulator could set higher standards based on conditions.
"We hope to improve transparency and expose the financing hidden in the shadows," Guo said.
He denied earlier market speculation that he would lead a unified super-regulator. However, he said the CBRC, the central bank and the securities and insurance regulators are moving jointly to curb risks in the financial sector.
Separately, the CBRC said measures will be taken to curb funding for property speculation.
Last year, 45 percent of new loans in China went to the property sector, according to the banking regulator, with most going to personal mortgages.
"Regulators want to see a stable, healthy real estate market without much fluctuations," said Wang Zhaoxing, vice chairman of the CBRC.
Meanwhile, supervision to prevent risks will continue on the country's online peer-to-peer lenders to protect the legitimate rights of investors, said Cao Yu, another vice chairman of the banking watchdog.
The CBRC issued a new rule on February 23, requiring P2P lending platforms to use third-party banks for custody of funds, and they have six months to meet the requirement.