China Weighs Ban on Bank Distribution of Hedge Fund Products

Chinese regulators are considering tougher restrictions on how banks sell financial products to the public, in a move that could cut off a major distribution channel for some of the nation’s largest hedge funds, according to people familiar with the matter.

The National Financial Regulatory Administration is seeking feedback from commercial banks on revisions that would ban “disguised” selling of so-called private fund products, a category that includes hedge funds, the people said, asking not to be identified as the consultations are private. Banks have for years been one of the key distributors of hedge funds, which typically raise ...