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According to a government official, the removal of non-compliant WMP securities from China is "basically complete."

According to a government official, the removal of non-compliant WMP securities from China is "basically complete."

BEIJING, January 15 (Reuters) - China has made significant improvements in cleaning up non-compliant wealth-management products (WMPs) a senior regulatory official told on Saturday, declaring a transition period in a years-long clampdown on the sector "basically complete."

These investment vehicles, usually with higher yields than deposits, have been marketed to retail and corporate investors.

Cao Yu, the vice chairman of the China Banking and Insurance Regulatory Commission, told a forum in Beijing that non-compliant short-term wealth management products and products with principal guarantees had been eliminated by the end of 2021.

The vast majority of banks, particularly small and medium-sized banks, had fixed their stock of WMPs on schedule, according to the AFP News.

Financial trust products were responsible for a steadily decreasing proportion of WMPs, with non-compliant trust products being used by some companies for financing, plunging more than 80%.

In 2018, Chinese regulators imposed sweeping restrictions on the asset management sector in order to rein in bank wealth management products, which is a result of a broad push to combat large and often opaque financial risks.

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