The People’s Bank of China on Thursday published rules governing investment by wealth management products (WMPs) in the country’s interbank bond market, Reuters reported. The new rules, posted on the website of the central bank-backed National Interbank Funding Center, aim to curb the risks posed by banks’ off-balance-sheet business by forcing them to strictly segregate on- and off-balance-sheet assets. WMPs are short-term investment products that banks market to customers as higher-yielding alternatives to traditional deposits. At the end of September, outstanding bank WMPs were RMB 9.9 trillion (US$1.63 trillion), according to China’s bank regulator.
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