China’s stock and bond markets are heading down a bumpy road as uncertainties mount over how far regulators will go to limit bank investment risk. According to Caixin, many banks have been heeding recent regulatory directives by cutting back or at least curbing growth tied to investments in other banks, bond and stock markets through non-bank asset managers. An indirect result has been that the Shanghai and Shenzhen exchanges have been losing ground in recent weeks. And billions of yuan worth of proposed bond issues have been delayed or canceled since January. Experts say some investors have been pulling out of stocks and bonds for fear that regulatory action is forcing banks to scale back securities investments made through intermediaries. They blame these sentiments for volatility in the stock and bond markets since mid-April. Citic Securities’ high-end estimate of entrusted investments nationwide was more than 19 trillion yuan as of December.