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Chinese Regulators have Instructed Banking Institutions to Trim Loan Books to Guard Against Capital Market Bubbles March 6, 2021 @ 7:10 pm By Omar Faridi China’s regulatory authorities have reportedly been telling local banking institutions to “trim” their loan books during 2021 to guard against potential risks resulting from bubbles in domestic capital markets. This, according to an update from Reuters which cited sources familiar with the matter (on March 5, 2021). The banks, which includes foreign and State-managed lenders, have received guidance from the reserve bank during the last few days instructing them to restrict or curb the size of their lending in 2021, according to bankers who commented on the condition of anonymity.

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