Wealth management products in China have been immensely popular in recent years. While the domestic stock market is notorious for being extremely volatile, even moribund investors have sought alternatives. Negative real interest rates have also been curtailing investment within the country. Despite the large demand in alternative investment products, Chinese markets dropped significantly Thursday following an announcement by banking regulators that new policy would tighten restrictions on wealth management products. This is an attempt to reduce “shadow banking” which the country sees as a threat to long-term stability. Mid-size lenders have been most affected by the recent with decreases of 8.9%, 8.7%, and 5% of China CITIC Bank, China Minsheng Bank, and China Merchants Bank share values, respectively. Recent growth decreases have put pressure on financial institutions to perform, but the country seeks to limit shadow banking exposure through narrowing the range of products wealth managers are allowed to invest in.