That gave their banks an extra source of potential profits, since private banks earn fees when their customers trade stocks, bonds or other assets. Some wealthy Chinese investors used to think a mix of Chinese equities and Chinese junk bonds was a diversified portfolio, said Peng. Some private banks have become more flexible with how much money clients need to commit to open accounts. Private banks had earned big business from the executives of these tech and property companies. That is slowing their ability to add Chinese clients, private bankers say.

Source: Wall Street Journal December 18, 2023 06:33 UTC