CBRC asks banks to check investment products

Regulators have asked banks to review their sales of high-yield investment products after a local bank wealth management product (WMP) default sparked risk concerns, The Wall Street Journal reported. The China Banking Regulatory Commission issued a notice to banks in Beijing and other parts of the country ordering them to carry out internal inspections on the investment products they sell as agents. These include WMPs, private-equity and trust products, but exclude insurance products and securities-investment funds. The regulator also asks banks to submit a list of their third-party investment products providing details including product size, duration, investment targets and potential risks. The move came after a Shanghai branch of Huaxia Bank (600015.SH) failed to pay promised returns to buyers of a US$22.47 million WMP when the product matured in late November.