The Interim Administrative Provisions on the Operation of the Private Asset Management Business of Securities and Futures Operation Institutions issued by the Asset Management Association of China came into effect on July 18.

The research team at ANBOUND Consulting believes that the regulators have tighten their supervisions on fund management business because on the one hand this helps to facilitate the deleveraging process and contain the potential risk in capital market while on the other hand, this helps to curb excessive market liquidity and channel the market funds from the virtual economy to the real economy.

Under the directive of "law-based, strict governance and comprehensiveness", the capital market in China will be subjected to an even more stringent regulatory environment in the next half of the year.