Site icon China Economic Review

China listed firms dumping money into WMPs

As China’s economic growth cools, Chinese publicly listed firms are increasingly trying to boost their incomes by buying so-called wealth management products (WMPs), Caixin reports. WMPs are higher-yield, short-term investments typically sold by commercial banks. In the 12 months ending Wednesday, 9,641 publicly traded companies listed on China’s A-share market moved 887.2 billion yuan ($128.5 billion) of capital into such financial products, according to data compiled by Chinese financial information provider Wind. That was a whopping near-46% jump over the same year period ending May 10 of last year. Six of the A-share listed companies each bought more than 10 billion yuan worth of WMPs. The companies included Tianjin Tianhai Investment, Yanzhou Coal Mining and Beijing Sanyuan Foods. The run-up in purchases of WPAs is happening at a time of growing concern about bubbles in the economy, largely due to a binge on credit over the past two years. This has sent property prices to a record high. 

Exit mobile version