In the wake of last year’s crackdown on illegal trading practices, People’s Bank of China (China PBOC) has formalized new wealth product investment rules, according to MNI News.
The new rules, which follow a draft published last April, will govern how the proceeds from funds raised through the sale of wealth management products can be invested in the interbank bond market.
As per the new rules, individual accounts will now be required to manage funds for each wealth management product sold.
Also, the transactions between different wealth management accounts run by the same bank and transactions between differing accounts and proprietary accounts by the same bank are prohibited in the new rules.
According to the news agency, within a year of the publication of the new rules wealth management products already invested in the interbank market are required to open new accounts.