China's banking and insurance regulator plans to introduce a major new regulation: achieve a comprehensive clean-up of asset management products in banks and insurance institutions.

The China Banking and Insurance Regulatory Commission has drafted the "Administrative Measures for Information Disclosure of Asset Management Products of Banking and Insurance Institutions", consisting of six chapters and thirty-five articles. Overall, the "Measures" comprehensively regulate the various stages of asset management product lifecycle, including fundraising, operation, and termination, guiding the industry to integrate information disclosure throughout the entire process of business operation, and achieve clear understanding of product status. Relevant leaders of the financial regulatory authority introduced that in the fundraising stage, the focus is on regulating the contents of product prospectus, contracts, risk disclosure documents, custody agreements, and issuance announcements, specifying performance benchmark requirements to make product sales more transparent. In the operation stage, the emphasis is on regulating the contents of regular disclosure reports, requiring truthful, accurate, and comprehensive disclosure of past performance, strengthening timely disclosure of significant events to clarify product risks. At the termination stage, the requirement is to disclose the fee and revenue distribution details in the expiration notice and liquidation report, ensuring clear calculation of product returns.