China tightens rules for WMPs

China has ordered local banks to register wealth management products (WMPs) before making them available to the public, The Wall Street Journal reported, citing a document the newspaper received Friday. The order came from the China Banking Regulatory Commission, signaling increased scrutiny over the high-yield, higher-risk products, which have rapidly grown in popularity as an alternative to the more secure, lower-yield traditional bank deposits. The rule should increase transparency of the products, of which there are roughly US$1.2 trillion (RMB7.1 trillion) worth in the market, up from essentially nothing two years ago.