China Regulators Initiate Inspections on Banking and Wealth Management Sectors, Reports Media

SHANGHAI – China’s banking regulator has initiated a nationwide health check on the banking sector, examining various aspects including deposits, lending, bills, and wealth management, according to a report by the National Business Daily.

This regulatory review comes in response to a series of financial scandals linked to the bill business that has affected lenders, as indicated by the newspaper.

The inspections will not only focus on commercial banks but will also include trust firms, financial leasing companies, and money brokers. Areas of scrutiny will include potential misappropriation of deposits, guarantees on principal payments for wealth management products, and any unofficial agreements related to bill businesses.

In a related report, it was noted that China’s securities regulator has urged securities firms, fund managers, and futures brokerages to conduct self-assessments of their wealth management operations and take corrective action where necessary.