China wealth management products rise to record 26.3 trillion yuan

Shanghai

CHINESE households, companies and banks held a record 26.3 trillion yuan (S$5.4 trillion) of wealth management products (WMPs) as at June 30, underscoring risks to an increasingly leveraged financial system from an explosion in shadow banking.

The products' value rose 11.8 per cent in the first half from the end of last year, according to a statement on the China Banking Wealth Management Registration System's website. More than 450 banks raised a total of 84 trillion yuan by selling 97,636 WMPs in the first six months.