CHINA CURBS WEALTH MANAGEMENT PRODUCTS IN SHADOW BANKING CRACKDOWN

BEIJING - The China Banking Regulatory Commission (CBRC) has reportedly introduced new measures to rein in banks’ issuance of wealth management products (WMPs), which have fuelled the growth of lending in the non-bank financial sector. In particular, the CBRC is reported to have imposed limits on WMPs used to fund trust loans, bank acceptances, and entrust loans. For WMPs beyond the established limits (4% of total assets and 35% of total WMPs), banks are instructed to move them back onto their balance sheets by end-2013.