Official announcements from Chinese regulatory authorities or major financial news outlets

China Considers Ban, Tougher Restrictions on Bank Distribution of Hedge Fund Products

Jun 12, 2024, 12:45 AM

China is considering a ban on banks selling hedge fund products, according to sources. This potential regulatory change could impact the 5.2 trillion yuan ($717 billion) hedge fund industry by cutting off a major distribution channel. Banks have traditionally been key distributors of hedge funds, and the new restrictions would add to the challenges faced by the industry. Chinese regulators are also weighing tougher restrictions on how banks sell financial products to the public.