WMP crackdown spurs China structured products market
China's slower growth rate and rising risks in credit-based WMPs are pushing policy-makers to diversify investment products
China's crackdown on wealth management products (WMPs) and the easing of derivatives regulation is creating the impetus for the birth of a new market, according to observers.
In February, securities companies were permitted to use over-the-counter equity derivatives; a pilot programme is also underway for firms to use equity return swaps and a similar programme is trialling the creation of a stock borrow/lending market in China.
On both the supply and demand side, the crackdown on wealth
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