China’s banking regulator has ordered the country’s banks to suspend sales of short-term wealth management products, Reuters reported, according to China’s 21st Century Business Herald, which cited anonymous sources. Shang Fulin, head of the Chinese Banking Regulatory Commission (CBRC), is said to be concerned that such short-term products – those with a maturity of less than one month – are posing volatility risks to market liquidity. Bank deposit rates are fixed by the government in China, and liquidity is usually managed by regulated loan-to-deposit ratios. In response, many banks compete by selling clients wealth management products in order to boost deposits and enhance lending. The suspension is only the latest in Beijing’s efforts to clamp down on the booming wealth management market; in October regulators signed a new set of rules to close loopholes and dampen growth.