China allows WMPs to buy stocks directly


The US$941bil China Investment Corp (CIC) wants permission to invest in local shares and bonds, and has laid the groundwork for an application to the central government, sources said.

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.

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