China to tighten regulation over wealth management units to prevent contagion risks

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The China Banking and Insurance Regulatory Commission (CBIRC) is seeking public advice on the draft rules that would require wealth management companies to improve their liquidity management including conducting pressure tests on their WMPs, according to a statement on the regulator’s website.

The rules will help urge companies to enhance liquidity management of WMPs and better prevent risks from spreading across the markets and products, CBIRC said.