The Financial Stability and Development Commission under the State Council will target shadow banking activities.
Due to undesirable regulations, domestic shadow banking activities represented by wealth management products have developed quickly, with some reports speculating the amount has surpassed 60 trillion yuan ($8.9 trillion), ynet.com reported Monday.
The supervision, although still at an early stage, will help Chinese banks, whose credit profiles will benefit from reduced interconnectedness among financial institutions, according to a report from Moody's Investors Service.
