China Steps Up Crackdown on $1 Trillion Bank Wealth Products
- Cash management products can no longer invest in riskier bonds
- Shares of Chinese developers slump on threat to funding
Photographer: Qilai Shen/Bloomberg
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China’s crackdown on shadow banking is taking aim at more than $1 trillion of opaque investments sold by banks as low risk and high yield, even while funds were channeled to riskier borrowers such as developers.