Categories: BankingPolitics

One of China’s ‘Shadow-Banking’ Practices to End in 2014

Wikipedia

One of China’s ‘Shadow-Banking’ Practices to End in 2014 (Reuters)

Starting in 2014, Chinese banks will be required by the China Banking Regulatory Commission (CBRC) to disclose holdings within their wealth management programs (WMPs). WMPs are short-term investment products used by Chinese banks to offer clients higher-yielding alternatives to traditional deposits. They have become integral to China’s “shadow-banking” system as these deposits are often kept off of the books. Unfortunately, they contribute greatly to China’s debt growth. Or, they did, since starting next year, the CBRC’s new regulation will require full disclosure. The question is… how will the investment community react to this change in Chinese bank regulation in 2014, and does this affect your desire to invest in Chinese banks?

Exclusive Geopolitics and Rising Volatility Take Hold of Market Landscape

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.