Stocks tumble amid tightening regulation – China business and technology news from April 24, 2017

Business & Technology

A summary of today’s top news in Chinese business and technology. Part of the daily SupChina news roundup "A second subdued Xi-Trump phone call."

Chinese stocks on April 24 registered their biggest one-day loss — the Shanghai Composite Index fell 1.6 percent, while the CSI 300 index fell 1.3 percent — since mid-December last year, amid expectations of tighter regulation from both the insurance and banking sectors, CNBC reports. Bloomberg explains that “China’s authorities are taking advantage of an improving economy to reduce financial-system risk by tightening the screws on leverage, while the banking regulator said it will crack down on irregularities in the financial sector.”

Recently, the increased visibility of so-called shadow banking and the $436 million fraud case at Minsheng Bank in Beijing have raised concerns about financial risk. One analyst said on April 23 that even if the Minsheng Bank case does not forecast a collapse of more wealth management products, it may indicate larger systemic risk and a pressing need for more transparency in financial transactions.