China’s snowballs hit by new regulatory clampdown
Restrictions on structured note issuance by securities houses blocks key distribution channel
China’s once-popular “snowball” products face a further setback as moves by the country’s regulators to restrict structured note issuance have effectively removed one of the two wrappers for the product.
On October 25, new guidelines issued by the Securities Association of China (SAC) banned securities houses from issuing non-principal-protected notes, including snowball structures. The clampdown hits issuance via trusts, in particular – the only way for retail investors to avoid the large
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