China's Embattled Wealth Management Products Threaten Bonds

  • WMP yields climbed to the highest in at least a year in June
  • Regulators asked banks to lower WMP yields earlier this month
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China’s most popular savings products have become a battleground for the nation’s smaller banks, which are competing for funds in a market that’s drawing increasing scrutiny from national policy makers.

Whatever the result, one of the main casualties is set to be the domestic bond market.