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This actually looks asute - another non official policy tool to "lower interest rates" but what about the secondary effects? - Eg. the article mentions this only applies to official WMP products, and so more money will leave official ones (1/5 of market) to unofficial ones (4/5 of market).
China Tells Banks to Lower Returns on Wealth Products
Deleveraging drive prompted some lenders to lift WMP returns
China banks held $4.2 trillion of wealth products as of May
China’s banking regulator told some lenders to lower the rates they offer on wealth-management products, people familiar with the matter said, as officials move to reduce financial risks and stimulate the economy.
Banks, including some big lenders, received the order from the China Banking Regulatory Commission earlier this month, said the people, asking not to be identified as they aren’t authorized to speak publicly. The requirement applies to on-balance sheet wealth-management products, which account for about a fifth of the nation’s more than $4 trillion of so-called WMPs, according to one of the people.
https://www.bloomberg.com/news/articles/...s-j5903t7u
China Tells Banks to Lower Returns on Wealth Products
Deleveraging drive prompted some lenders to lift WMP returns
China banks held $4.2 trillion of wealth products as of May
China’s banking regulator told some lenders to lower the rates they offer on wealth-management products, people familiar with the matter said, as officials move to reduce financial risks and stimulate the economy.
Banks, including some big lenders, received the order from the China Banking Regulatory Commission earlier this month, said the people, asking not to be identified as they aren’t authorized to speak publicly. The requirement applies to on-balance sheet wealth-management products, which account for about a fifth of the nation’s more than $4 trillion of so-called WMPs, according to one of the people.
https://www.bloomberg.com/news/articles/...s-j5903t7u