(Reuters) China’s banking regulator and main bond clearinghouse have asked commercial banks to reduce rates they offer on high-yielding wealth management products (WMPs), five sources told Reuters, an apparent back-pedalling on commitments to let markets price credit.The move to suppress returns on WMPs would cut the cost of capital for cash-strapped firms relying on the estimated 20 trillion yuan ($3 trillion) industry for costly credit to stay afloat, and reduce the appeal of such products to retail investors, which could boost alternative investments such as Chinese stocks.
Chinese Regulator Asks Banks to Cut Wealth Management Yields
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