Bank of America thinks China's wealth management products could be a systemic risk

Reuters/Bobby Yip The risk of a liquidity crisis in China’s bank-run wealth management product (WMP) space, the biggest “deposit” base of China’s shadow bank, is growing at an alarming rate according to Bank of America Merrill Lynch’s February 29 report on the sector. According to figures from the Annual Report of the Bank WMP Industry, the total value of assets in WMP products increased 56% year-on-year during 2015 to a total of 23.5 trillion yuan (USD3.59 trillion). Last year’s gro...