Beijing's rescue of the collapsed Baoshang Bank has led some investors to seek out bond investments, relying on the implicit desire of the government to prevent a credit crisis.
Shadow banking activities and wealth management business in China have shown signs of declines, but investors' demands for such products should remain strong.
Minsheng Royal Asset Management, the mainland's second biggest segregated-account subsidiary, has received a six-month ban, as Beijing starts consulting on tighter capital rules.
Proposed rules are expected to further curb the growth of wealth management products in China by restricting the instruments banks can buy, with WMP returns tipped to fall.
Proposed capital rules for the $1.5 trillion fund subsidiaries segment are tougher than expected, as Beijing further turns the screw on the domestic investment and shadow-banking sectors.
While it has served as an alternative financing channel to society at large, it also involves moral hazard and hidden risks. Xie Ping, deputy general manager at CIC, joined the debate.