Citic Securities, China's largest brokerage, was down 3.7%.

This comes on news that the government wants banks to unwind the controversial wealth management products (WMPs) and switch to asset management plans (AMPs).

WMPs make up the $2 trillion powder keg at the heart of China's banking system.

In a quest for higher returns, tons of people have been pouring their wealth into WMPs, which are sold as high yielding,  low-risk investments offering "expected" instead of "guaranteed or promised returns." This flood of deposits is key reason behind the surge in social financing and banks’ fee income in recent years.