Flows from banks raise China bond market risks

A huge wave of investment outsourcing by Chinese banks is creating a lot of new bond fund business – but also raising challenges – for domestic asset managers, even as equity funds and money market funds (MMFs) have lost their attraction. Commercial banks have been handing large sums to asset managers, as low yields on government bonds leave them struggling to meet guaranteed returns on proprietary funds and wealth management products (WMPs) they sold to retail investors, as repor…