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The rapid expansion of non-bank.........>

CHINA PRESS
CHINA PRESS: The rapid expansion of non-bank financial institutions has created
many potential risks, so China will tighten regulations to guide them to control
risks and better serve the real economy, the Economic Information Daily said on
its front page Friday. Because of fierce competition, non-bank financial
institutions usually pay more attention to scale than to quality, the newspaper
argued, noting that some insurance companies expanded too quickly by using
highly-leveraged capital, which harmed the real economy. China should learn from
the U.S. experience and consider extending the reserve requirement system to
non-bank financial institutions.

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