Shadow banking crackdown seen needed to tame stocks in China
Taipei
CHINA'S clampdown on borrowing for purchases of the world's most-volatile equities has missed shadow-banking activities that allow investors to take even greater risks.
Investors have ramped up bets on rallying shares by borrowing through structures known as "umbrella trusts", which allow for more leverage than brokerage financing. Goldman Sachs Group Inc estimated up to 500 billion yuan (S$108 billion) has entered stocks through wealth-management products (WMPs).
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Crypto firm sues SEC to fend off oversight of Ethereum
Great Eastern chairman appeals for patience as shareholders fume over share price ‘disaster’
S&P Global first-quarter profit beats estimates on strong product demand
Thai banks cut rate for some borrowers after push from PM
Money laundering accused who faces 22 charges to plead guilty on May 14
BNP Paribas beats estimates as lower costs offset trading slump