China Said to Weigh Tighter Rules on Wealth-Management Products
- CBRC to limit smaller banks’ wealth-management business
- China’s more than $3 trillion WMP market is worth 35% of GDP
Marble lion sits in front of China Banking Regulatory Commission (CBRC) building.
Photographer: Zhang Peng/LightRocket via Getty ImagesThis article is for subscribers only.
China’s banking regulator is proposing tighter rules for the nation’s $3.5 trillion market for wealth-management products, a person with knowledge of the matter said, as the government moves to rein in shadow-financing risks.
The China Banking Regulatory Commission has drafted regulations designed to protect mass-market investors, limit the involvement of smaller banks and ensure that lenders have adequate capital to cushion against potential losses, said the person, who asked not to be identified discussing private information.