BEIJING/SHANGHAI, Dec 7 (Reuters) - Ten Chinese joint-stock banks raised objections to new central bank rules to tighten regulations on the asset management industry during a close-door meeting in Shanghai last week, three sources with knowledge of the matter told Reuters.
High-level banking executives said during the meeting that the central bank’s new rules would have a big impact on financial markets and could even trigger systemic financial risks, according to the sources, who declined to be identified due to the sensitivity of the matter.
The executives also said the rules on removing implicit guarantees for wealth management products could trigger redemptions, causing liquidity risks and increasing market volatility, the sources said.
The banks also said the rules could reduce banks’ support for the real economy and increase financing costs, the sources said.
The executives also suggested that the central bank extend the transition period for the new rules to three years, said the sources.
China has 12 national joint-stock commercial banks. Most are listed in Shanghai and Hong Kong.
The People’s Bank of China could not be immediately reached for comment outside business hours. (Reporting by Shu Zhang, Li Zheng and Ryan Woo)