Stock Market Slumps After New Banking Regulations Released
China's banking regulator had tightened restrictions on wealth management products in a bid to reduce risks in the country's financial system.
Mar 28, 2013
Translated by Yu Menglu
Shares in many small and medium-sized Chinese banks, real estate companies and financial institutions plunged yesterday after China's banking regulator announced new rules covering the financial service operations of commercial banks on Wednesday.
The notification, which was posted to the official website of the China Banking Regulatory Commission (CBRC), placed restrictions on the range of assets in which wealth management products can invest.
The regulations also put limits on the cooperation between banks and securities companies.
Domestic stock markets opened low on Thursday and by the end of trading he Shanghai Stock Exchange Composite Index was down 2.82 percent and the Shenzhen Component Index had fallen 2.88 percent.
Bank stocks fell by an average of 6.04 percent, with smaller banks falling more than the larger state-owned banks - which had over the past week had reported combined net profit of 781 billion yuan in 2012.
Trading in shares of Industrial Bank Co (兴业银行) was halted after they fell by more than the 10 percent daily limit. Shares of Ping An Bank Co (平安银行) fell by 9.62 percent and the share price of China Citic Bank Corp (中信银行) ended the day down 9.11 percent.
Links and Sources
Beijing News: 收评：银监会重拳整治银行理财 沪指重挫2.82%
http://www.bjnews.com.cn/finance/2013/03/28/255525.html
CBRC: 中国银监会关于规范商业银行理财业务投资运作有关问题的通知
http://www.cbrc.gov.cn/govView_2B22741AFBC446CF890636DACAB71166.html
Mar 28, 2013
Translated by Yu Menglu
Shares in many small and medium-sized Chinese banks, real estate companies and financial institutions plunged yesterday after China's banking regulator announced new rules covering the financial service operations of commercial banks on Wednesday.
The notification, which was posted to the official website of the China Banking Regulatory Commission (CBRC), placed restrictions on the range of assets in which wealth management products can invest. The regulations also put limits on the cooperation between banks and securities companies.
Domestic stock markets opened low on Thursday and by the end of trading he Shanghai Stock Exchange Composite Index was down 2.82 percent and the Shenzhen Component Index had fallen 2.88 percent.
Bank stocks fell by an average of 6.04 percent, with smaller banks falling more than the larger state-owned banks - which had over the past week had reported combined net profit of 781 billion yuan in 2012.
Trading in shares of Industrial Bank Co (兴业银行) was halted after they fell by more than the 10 percent daily limit. Shares of Ping An Bank Co (平安银行) fell by 9.62 percent and the share price of China Citic Bank Corp (中信银行) ended the day down 9.11 percent.
Links and Sources
Beijing News: 收评：银监会重拳整治银行理财 沪指重挫2.82%
CBRC: 中国银监会关于规范商业银行理财业务投资运作有关问题的通知
