China Financial Daily:Shadow Banking Channel AUM Continued to Drop in 2Q17

Asset Management Association of China (AMAC) released 2Q17 AUM data forvarious asset management institutions and we noticed that AUM of mutualfund subsidiaries, which is a major shadow banking channel continued todecline. Mutual fund subsidiaries’ AUM started to decline from 4Q16 afterregulators imposed tighter capital rules and was Rmb8.59trn as of 2Q17, downRmb1.32trn/13% qoq or 22% yoy. In addition, brokers’ AUM also saw aRmb674bn drop qoq in 2Q17 to Rmb18.1trn, due to less shadow bankingbusiness