China Said Drafting Asset Management Risk Restrictions

The video discusses an exclusive Bloomberg story about the Chinese government's efforts to draft new rules for asset management products. These rules aim to clarify that there are no government guarantees for wealth management products, requiring financial institutions to set aside reserves for potential risks. The draft rules also restrict investments in nonstandard credit assets. The video highlights previous regulatory attempts and current concerns about the Chinese bond market, emphasizing the interconnectedness of wealth management products and the potential risks involved.

What concerns are raised regarding the investment of wealth management products in bonds?

Why is the Chinese government keen to regulate the asset management sector now?