Investments

Wealth products under scrutiny in China

China’s banking regulator is trying to cool the rapid growth in recent years of wealth management products in the mainland, to prevent financial instability.

According to a Bloomberg report, figures from the China Banking Regulatory Commission showed that outstanding products issued by banks stood at RMB29.1 trillion (USD4.2 trillion) as of March 31, up over 18% from a year earlier. 

The growth rate slumped from 53% during the same period last year, the report cited the regulator as saying.

Wealth management products are popular among investors due to their high yields.

Regulators are looking to draft rules to plug loopholes in regulations for such cross-market financial products, said the report.