Listen to this article
This is an experimental feature. Give us your feedback. Thank you for your feedback.
What do you think?
Stocks fell in Shanghai and Shenzhen on Monday after the People’s Bank of China announced a new set of rules on Friday aimed at curbing financial risk in the asset management industry.
The sweeping regulations, which will affect some $15tn of products issued by banks, insurance companies and other financial firms when they come into force in June, will prohibit asset managers from promising investors a guaranteed rate of return and require them to set aside 10 per cent of the management fees they collect for provisioning purposes.
The Shanghai and Shenzhen Composite indices both fell during the Monday morning session, with the former off 1 per cent and the later down 0.7 per cent.
The Hang Seng China Enterprises index, composed of Hong Kong-listed large-cap Chinese companies, was off 0.8 per cent near the end of the morning session. Among the biggest decliners on the index were China Life Insurance and China New Life Insurance, down 1.7 per cent and 1.4 per cent, respectively.