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China pledges to take on the 'original sin' of its financial system

Leverage has grown over the past decade, a result of the expansion in domestic wealth seeking higher returns
Thursday, August 10, 2017 - 05:50

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Trillions of dollars are held in all manner of assets in China, from high-yielding wealth management products (WMPs) to so-called entrusted investments. WMPs have grown in popularity as they typically offer savers much higher yields than banks' offer on deposits.

Beijing

CHINA'S much-vaunted campaign to tackle its leverage problem has captured headlines this year. But to understand why they're taking on the challenge - and the threat it could pose to the world's second-largest economy - you need to dig into the mountain.

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