Shadow banking activities and wealth management business in China have shown signs of declines, but investors' demands for such products should remain strong.
Tag : wmp
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.
The Chinese banking regulator has proposed a scheme whereby banks will offer 'asset management plans' instead of wealth management products, which have sparked concerns.
The CBRC says principal and non-principal guaranteed wealth management products issued by banks should not fall under shadow-banking. But this doesn't appear to address the risks.
