The National Financial Regulatory Administration (NFRA) has issued the "Interim Measures for the Supervision and Administration of Local Asset Management Companies," establishing comprehensive oversight frameworks to regulate these entities. These regulations mandate strict operational boundaries, prohibiting local AMCs from offering principal guarantees or fixed return promises, disguising non-performing assets through off-balance-sheet arrangements, or facilitating new implicit local government debts via financing platforms.

Concentration risk parameters now cap single-client exposures at 10% of net assets, with group-client exposures limited to 15%. Liquidity safeguards require holdings of qualified liquid assets sufficient to cover net cash outflows over the next 30 days. Related-party transaction ceilings restrict claims against affiliated entities to 50% of the previous quarter's net assets.

Funding channels are explicitly confined to institutional borrowing, shareholder loans, and bond issuances, with absolute bans on public deposit-taking and financing through unlicensed intermediaries or private funds. The leverage ratio is capped at three times net assets.

Provincial financial regulators will assume primary oversight responsibilities, while the NFRA and its branches will enhance coordination through information-sharing mechanisms. The measures aim to sharpen local AMCs' focus on core operations while strengthening their role in mitigating regional financial system vulnerabilities and real economy risks.