China's securities watchdog is calling on the country's financial institutions to examine their structured asset management instruments because of new rules governing those products.

The China Security Regulatory Commission recently tightened its supervision of structured asset management products. It is also more closely scrutinizing how money borrowed by investors is channelled into China's equity and bond markets.

The CSRC on July 18th enacted new rules that set leverage caps for structured product investments handled by brokers and asset management firms.