September 30, 2018 / 11:50 PM / a month ago

RPT-China lets banks' public wealth management products buy stocks indirectly

(Repeats story from late Friday)

SHANGHAI/BEIJING, Sept 28 (Reuters) - China’s banking regulator issued new rules on Friday allowing wealth management products publicly sold by banks to invest in equity-related mutual funds, giving WMPs an indirect way to buy stocks and potentially benefiting the share market. Previously, such WMPs were only allowed to invest in money market and bond funds.

The rules, published by the China Banking and Insurance Regulatory Commission (CBIRC), are part of Beijing’s broader efforts to curb shadow banking and reduce systemic financial risks. The draft rules were published in July for public opinions, and regulators made minor changes based on feedback.

CBIRC also said in a statement that regulators are drafting rules to tighten supervision of banks’ structured deposit products. There have been signs some banks have used structured deposit products to circumvent asset management guidelines. (Reporting by Samuel Shen, John Ruwitch and Lusha Zhang; editing by Simon Cameron-Moore)

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