Shrinking WMPs No Help for Equities

With China’s equity markets under pressure in Q1 during a politically significant year, official rhetoric now suggests regulators are seeking to support stock prices through the expanded use of wealth management products (WMPs), comparable to the direct market interventions of 2015. However, poor market performance among WMPs and heavy redemption pressures will stymie these efforts. Stronger economic growth and equity market performance will require substantive policy support beyond rhetorical boosterism.

Posted April 7, 2022
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