Industry managers said Chinese wealth-management product pools totaling about
RMB36 trillion have been instructed to stop new investment in non-standard
consumer-loan assets. Investment managers at a city commercial bank and a
joint-stock bank confirmed the instruction. Banks say no new purchases are
allowed and existing holdings will run off to maturity. Insiders point to a 1H
investigation of a lending-assist platform as prompting a reassessment of
non-standard consumer-loan risk; some firms say similar limits have been applied
since the start of the year. Consumer-loan ABS are reportedly excluded from the
restrictions.
