China orders banks to control wealth product risks
BEIJING (REUTERS) - Chinese banks must control their wealth management businesses and reduce risk by not selling unauthorised products or misleading customers, the bank regulator said on Monday, a month after a publicised failure of one wealth product.
The China Banking Regulatory Commission said banks would also be barred from selling private equity funds, and that it would monitor investment channels of trust loans and other financial products to minimise risk.
"We will strictly control related risks from banks'off-balance-sheet operations and monitor the design, sales and investment of wealth management products," the regulator said in an online summary of 2013 work priorities.
China's fast-growing wealth management sector made a stir last month after one wealth product sold through Hua Xia Bank failed to pay its annualised return on the given date.