Following the introduction of laws regulating the Chinese retail bank wealth management market, new research suggests China's burgeoning wealth product market is in decline.
According to Chengdu-based research firm Cnbenefit, bank issuance of wealth management products dropped 8.8 per cent in April from March, with average yield dropping from 4.3 per cent to 4.3 per cent, the Wall Street Journal has reported.
The new rules mandate that retail wealth management product providers must reduce the share of products invested in “illiquid assets” to 35 per cent of offering or 4 per cent of toal assets.
China Banking Regulatory Commission data shows that the mainland Chinese wealth management market has grown exponentially, growing from virtually zero a few years ago to 7.1 trillion yuan (US$ 1.2 trillion) at the end of 2012.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 24 May 2017CFS launches adviser toolsBy Staff Reporter
- 24 May 2017Industry fund consumer satisfaction declinesBy Staff Reporter
- 24 May 2017Advice unaffordable for families, says insurerBy Staff Reporter
- 24 May 2017Focus rules out insto acquisitionsBy Aleks Vickovich
- 24 May 2017'General advice' provider gets AFSL suspensionBy Staff Reporter
- 23 May 2017AFA/ANZ accepting Rising Star nominationsBy Staff Reporter
- view all