China Citic Bank, a medium-sized state-owned bank, disclosed Friday that its asset portfolio did not comply with new rules that were handed down last week to limit the sale of certain investment products, The Wall Street Journal reported. Citic Vice President Zhang Qiang told reporters that nonstandard investments account for 64% of the wealth management products (WMPs) that the bank held at the end of 2012, while the new regulations cap WMPs that are considered nonstandard, those that are riskier and invest in non-publicly traded securities, at 35%. Citic said it would take action to comply with the rules. Bank stocks dropped in trading on Thursday after the rules were announced.
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