Financial management companies are said to be restricted from investing in consumer finance ABS, and many institutions have responded: business is normal, regulatory compliance is becoming stricter.

date
14/07/2026
Recently, there have been market rumors that regulatory authorities are planning to restrict the investment of wealth management funds in consumer finance ABS products issued by trust companies. Several trust company officials have stated that they have not yet received specific regulatory documents, but they generally feel that the requirements for business compliance are tightening. A senior executive of a trust company revealed that although there has been no official signal, the compliance threshold for consumer finance trust business has significantly increased in practice, leading institutions to proactively reduce their scale, mostly based on risk considerations. "If there is to be a reduction or restriction of such business in the future, we still hope to leave some buffer space for institutions to avoid negative feedback from the market due to sudden changes in expectations." Another trust company mentioned that they had conducted internal risk assessments for consumer finance business in the past. As for wealth management companies, several of them have told reporters that they have not received any relevant notifications. A wealth management company official from a commercial bank said, "There have been many rumors recently, but there has been no substantial action so far, and the relevant businesses are still being conducted normally."