Some non-standard financial products exceed regulatory limits for non-standard investments, hiding multiple risks.

2026-04-02 01:15:51

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Recently, several wealth management companies have released their 2025 annual reports for their wealth management products. Reporters found that many wealth management products invest a large proportion in non-standardized debt assets. Local government financing vehicle (LGFV) companies and internet lending companies are the main borrowing clients. Experts believe that wealth management products favor non-standard assets because they offer three distinct advantages: “high returns, low volatility, and easy matching.” However, the “Measures for the Administration of Wealth Management Subsidiaries of Commercial Banks,” issued on December 2, 2018, stipulates that at any given time, the balance of wealth management subsidiary companies’ wealth management products investing in non-standard debt-type assets must not exceed 35% of the products’ net assets. Some products have breached the regulatory limits, concealing multiple risks. (China Securities Journal)

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