China publishes new rules on financial institutions' asset management business

BEIJING, April 27 (Reuters) - China’s central bank on Friday unveiled far-reaching asset management rules, the latest in the country’s efforts to reduce leverage in financial markets.

Markets have been awaiting the release of the final version of the new rules for China’s $15 trillion asset management. Banks have protested that the draft rules are too stringent, and could pose a potential trigger for systemic risks.

The rules will close loopholes that allow regulatory arbitrage, reduce leverage levels to curb asset price bubbles and rein in shadow banking activity. (Reporting by Beijing Monitoring Desk and Ryan Woo Editing by Jacqueline Wong)