china financial institutions

China interest rate reform

China: interest rate reform to improve transmission

Magdalene Teo, Fixed Income Research Asia, Eric Mak, Equity Research Analyst Asia, Julius Baer │China has opted for interest rate reform (to be more market-oriented) instead of announcing a benchmark rate cut, so liquidity flow is more targeted to the segments that need it.


wealth

Alarm Bells Sound Over Wealth Management Products

Caixin | As we start 2016 hoping for a better economic outlook, regulators must address certain financial problems, particularly risks associated with wealth management products that led to many defaults last year. China weathered several major financial storms over the past decade because of a towering pile of savings that provide banks with ample liquidity to prop up the market during times of trouble. But now depositors are using their money to snap up financial products offered by trust companies promising high returns.