QINGDAO — Some unlicensed asset administration firms are nonetheless working in China, inflicting a “critical risk to monetary stability”, a prime official of China’s central bank on Saturday.Fan Yifei, vice governor of the Folks’s Bank of China, advised a discussion board {that a} sizeable proportion of the 5,000 third-party wealth administration companies in China do not need the licence to promote insurance coverage or public choices of funds.China launched sweeping asset administration guidelines in April 2018 to crack down on dangerous shadow lending and extreme monetary leverage by way of banks’ wealth administration merchandise.The central bank final month prolonged a grace interval for implementing these guidelines by a 12 months to the tip of 2021.The requirements stay unchanged regardless of the extension, Fan advised the discussion board. (Reporting by Huang Binbin and Yew Lun Tian; Enhancing by William Mallard)
