Beijing Monitors Foreign Financial Groups

From FT:

Beijing has stepped up its monitoring of international financial institutions in the country amid fears that the failure of a large foreign group could see the global credit crisis spill over into a largely insulated China.

China’s securities regulator has ordered all joint venture fund management groups to report on the health and financial position of their foreign partners and explain how the global turmoil could affect operations in China.

“This is a very normal action to take under the current extraordinary circumstances,” said one regulatory official who asked not to be named because he was not authorised to speak publicly. “It is the government’s responsibility to do this in order to protect the interests of Chinese investors and the stability of the domestic market.”