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China's Renewed Drive to Tame Its Debt Pile Starts to Bite

  • Issuance of WMPs, trust products, NCDs tumbled in April
  • Regulators issued flurry of new rules in the past month
The West Pearl Tower, background left, stands among residential and commercial buildings illuminated at night in Chengdu, China, on Sunday, April 9, 2017. Sparing China from the currency-manipulator label is the latest indication that Trump's rhetoric on trade as the Republican candidate last year was harsher than the policies he's establishing as president.
Photographer: Qilai Shen/Bloomberg
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Signs are emerging that the Chinese government’s renewed drive to curb financial leverage is starting to bite.

The number of wealth-management products issued by Chinese banks slumped 39 percent in April from the previous month, while trust firms distributed 35 percent fewer products, according to data compilers PY Standard and Use Trust. Sales of negotiable certificates of deposit, a popular instrument of interbank lending known as NCDs, tumbled 38 percent from a record, figures compiled by Bloomberg show.