China’s Wealth-Management Product Boom Seen Cooling on Rules
- China Merchants Securities cites regulation, lower yields
- Analyst Ma Kunpeng doesn’t say when decline may start
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China’s multi-trillion dollar boom in wealth-management products, under scrutiny around the world because of potential threats to financial stability, is set to cool as yields fall on tighter regulation, according to China Merchants Securities Co. analyst Ma Kunpeng.
Ma cited a “significant slowdown” in the products’ growth in the first half and said that WMPs may shrink in the future, with money flowing elsewhere, in an e-mailed note dated Sept. 4. He didn’t say when.