China's credit assessment overhaul masks loopholes

Author: Brian Yap | Published: 12 Jan 2016

Counsel in China have high hopes for the proposed overhaul of the country’s credit assessment system, but stress that a host of other regulatory issues need to be ironed out, particularly surrounding wealth management.

The People’s Bank of China (PBOC) announced on December 29 that it would launch a new macro-prudential assessment system (MPA) this year as China's government further deregulates its banking sector.

But some believe the new regime should also close a slew of regulatory loopholes. "For commercial banks, PBOC and China Banking Regulatory Commission (CBRC) should issue rules to regulate the wealth management services provided by commercial banks," said Tiecheng Yang, partner at Clifford Chance in Beijing.

"I think one of the...