Chinese banks' large-scale outsourcing of fixed income investments could stretch domestic fund houses' capabilities for managing risk and increase the possibility of a blowup.
Tag : wmps
China's investment industry is set to continue its rapid expansion, as institutions increasingly outsource investments to both mandates and mutual funds, says rating agency Fitch.
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.
As the China Banking Regulatory Commission sets out requirements for wealth-management product providers, analysts highlight issues around WMPs.
