TO strictly regulate the booming wealth sector and to tame the
inflation, China has come out with a set of new guidelines, which prevent banks
from using wealth products to lure deposits or from falling into the trap of
buying products that do not correctly demonstrate their risk
profiles.
The
new regulations was released by the China Banking Regulatory Commission last
Sunday and the Govt has made it clear that the banks must comply with the new
line or be penalised. The new rules will come into effect from January 1,
2012.
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