China Banking and Insurance Regulatory Commission: Local asset management companies are not allowed to help financial institutions and others make false reports to cover up bad assets.

The China Banking and Insurance Regulatory Commission has issued the "Interim Measures for the Supervision and Management of Local Asset Management Companies", which stipulates the red lines for operation, explicitly stating that local asset management companies are not allowed to engage in activities such as guaranteeing the principal, fixed income commitments, requiring the transferor to bear repurchase obligations, helping financial institutions to conceal bad assets with false statements, providing financing channels for financing platforms, or adding to local government's hidden debt burdens.