The financial sector should be..........>

CHINA PRESS: The financial sector should be regulated based on regulatory goals

instead of based on different sectors to offset regulatory arbitrage, Sun

Guofeng, head of the financial research institute under the PBOC said at a

conference over the Labor Day holiday, China Securities Journal reported

Wednesday. 

- Three main factors cause financial risks according to Sun: firstly, fragile

liquidity in the banking system as the existence of shadow banks conceals the

real balance sheets of banks; 

- Secondly, overexpansion of assets, boosted by shadow banks, Sun said;

- Thirdly: the fact that bank loans support transactions of existing assets,

which can lead to asset bubbles, Sun said.