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China Insight - Finalised New WMP rules more relaxed than expected

China Insight: After a multi-month consultation that started in Nov 2017, the Chinese financial regulators on 27 April announced their new rules on the CNY100tn wealth management products (WMPs) industry (see chart 1 and chart 2), effective immediately. The new rules cover most WMPs offered by most financial institutions (FIs), including banks, trusts, brokers and asset managers. Different from the past in which different sectors were regulated by different authorities, the whole industry now is put under the PBOC's supervision. Meanwhile, regulations are structured along the product types, rather than by sectors, with unified standards for each product to reduce regulatory arbitrage. Read more...
China Insight - Finalised New WMP rules more relaxed than expected

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