China to designate more financial groups as ‘too big to fail’
By Gabriel Wildau in Shanghai
Chinese regulators are to designate more financial institutions as “systemically important” in their latest move to limit financial risk following a decade-long debt build-up.
A policy framework published jointly on Tuesday by several regulatory agencies sets the stage for securities brokerages, insurers and other financial groups to receive a designation often interpreted to mean “too big to fail”. Global regulators have already applied this designation to the four largest Chinese commercial banks, and China may now also add others to this list.