Chinese banks' wealth management units greenlit to buy shares

It aims to boost market confidence amidst a cooling economy.

Reuters reports that the China Banking and Insurance Regulatory Commission (CBRIC) has finally given approval for the wealth management arms of domestic commercial banks to directly invest in Chinese shares.

The regulator first unveiled the plan in October as part of an effort to boost market confidence in light of China's slowing economy.

The outstanding amount of wealth management products sold by banks have hit US$4.26t (RMB29.54t) as of end-2017, according to official data.

The current business model of Chinese banks’ wealth management business is unsustainable in the long run as authorities double down to overhaul the outdated model, accounting firm PwC said in an earlier report

Also read: Chinese banks spin off asset management arms as oversight mounts

“The implementation of the new asset management regulation in 2018 has posed stricter requirements on the future development and transformation of the wealth management business of banks,” EY Greater China banking & capital markets leader Kelvin Leung said in a previous statement.

Here's more from Reuters:

Also Read

Bangkok Bank logs net profit of $1.05b for 9M 2024

Banks face value creation challenge despite record revenues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit