WMPs to be allowed for swaps

Private equity funds get the nod for raising money via qualified products

The nation's top economic regulator allowed on Friday banks' wealth management products to be used for funding debt-to-equity swaps programs, as part of efforts to lower China's high corporate leverage.

Private equity funds will now be allowed to raise money via qualified wealth management products to take part in debt-for-equity swap programs for the first time, according to a statement issued by the National Development and Reform Commission. The move comes as debt to equity swaps financing demand remains high in the country.