Regulators in some Chinese regions have asked wealth-management firms and banks’
proprietary wealth products to reduce holdings of non-standard assets, but
enforcement differs by locality. A Jiangsu bank asset-management head said the
bank received regulatory guidance and has cut non-standard holdings to 0. A
Jiangsu wealth manager said it received a reduction task last year and is
It, though regulators did not implement demand full elimination. A northern
bank asset-management head said regulators ordered that non-standard assets must
not rise as a share of outstanding wealth products. Multiple regional wealth
managers told reporters they have not received clear cut-down directives. In
Shanghai, a wealth manager said no notice has been issued; current supervision
sets a company-level cap of 35% for non-standard assets but no explicit
per-product limit, though industry practice is to keep per-product non-standard
exposure below about 50%.
