SHANGHAI (Reuters) – China is launching a nationwide inspection of local financial asset exchanges, with a focus on their debt financing activities, after some platforms were found to be illegally facilitating financing for property developers.
An agency installed at the China Securities Regulatory Commission (CSRC) responsible for cleaning up illegal exchanges has recently sent letters to 29 provincial governments in China, urging them to start on-site inspections at local financial exchanges, CSRC said in a statement on its website.
Some exchanges have done a poor job of reducing their debt financing business, and some even illegally facilitate funding for real estate companies, CSRC said.
Other problems include illegal selling of products to individuals, according to the statement.
CSRC reiterated that provincial governments must crack down on illegal activities at local exchanges in a bid to maintain financial and social stability.
The wealth management unit of China Evergrande Group, the troubled developer, partnered with local financial exchanges in issuing investment products to individuals, Chinese financial magazine Caixin has reported.
(Reporting by Shanghai Newsroom; Editing by Mark Potter)
