China orders small banks to curtail wealth management business, sources say

BEIJING, June 20 (Reuters) – China’s banking regulator has given small banks a 2026 deadline to stop selling wealth management products unless they have a separate wealth subsidiary in a bid to curb financial risks, three people with knowledge of the matter told Reuters.

A 2018 regulation and previous instructions had required banks to set up a wealth management subsidiary dedicated to such products, but the regulator did not give a timeline for when banks had to comply.