HONG KONG: Chinese authorities said wealth management products (WMPs) can invest directly in the stock market, as policy makers try to reduce the potential risks associated with WMPs buying third-party offerings.
Commercial banks can now open accounts to invest their WMP assets straight into equities, China Securities Depository and Clearing Corp. said in a statement on its website late Wednesday. Under previous rules, they could only get exposure to stocks via investment products from other financial institutions including brokerages and trust companies.