Chinese wealth product market drops

According to Chengdu-based research firm Cnbenefit, bank issuance of wealth management products dropped 8.8 per cent in April from March, with average yield dropping from 4.3 per cent to 4.3 per cent, the Wall Street Journal has reported.

The new rules mandate that retail wealth management product providers must reduce the share of products invested in “illiquid assets” to 35 per cent of offering or 4 per cent of toal assets.

China Banking Regulatory Commission data shows that the mainland Chinese wealth management market has grown exponentially, growing from virtually zero a few years ago to 7.1 trillion yuan (US$ 1.2 trillion) at the end of 2012.