Chinese Banks Cut Back on Wealth-Management Products

Chinese banks cut back on wealth management products.

New rules aimed at reducing risks in China’s financial-services industry have dented the appeal of high-yield alternatives to deposits and threaten to crimp profits for banks, reported by Grace Zhu from WSJ.

Bank issuance of wealth-management products—retail investments that offer some of the security of deposit accounts but higher yields—dropped 8.8% in April from March, according to Cnbenefit, a research firm in the city of Chengdu. The average yield edged down to 4.3% in May from 4.4% in March, Cnbenefit said.

Malaysia’s Economy at Risk with Growing Consumer Debt

Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit could rock the country’s economy.

Malaysia’s consumer debt is at 76.6 per cent of its GDP and some economists believe that the growing consumer credit — where each ringgit of growth nearly matches an extra ringgit of consumer debt — could rock the country’s economy, the Financial Times (FT) reported today.

The country’s household debt ratio is the highest in the region, the influential daily reported, citing Johanna Chua, an economist at Citigroup, who believed this makes the Southeast Asia’s third largest economy vulnerable, especially as lower-income households bear a greater share of the overall debt.

The Asian Century Report

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Chinese Banks Cut Back on Wealth-Management Products

Malaysia’s Economy at Risk with Growing Consumer Debt

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