Proposed rules are expected to further curb the growth of wealth management products in China by restricting the instruments banks can buy, with WMP returns tipped to fall.
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The China Banking Regulatory Commission is seeking to establish a department to oversee the nation's $2 trillion trust industry in apparent recognition of growing risk, say local media.
The Chinese banking regulator has proposed a scheme whereby banks will offer 'asset management plans' instead of wealth management products, which have sparked concerns.
Regulatory freedoms granted to segregated-account subsidiaries of Chinese fund firms have seen the segment swell, but the risk of investor losses is going unnoticed, say sources.
As the China Banking Regulatory Commission sets out requirements for wealth-management product providers, analysts highlight issues around WMPs.
Competition is hotting up in China's funds industry, with the arrival of more bank-backed asset managers set to make life even more difficult for other players.
The CBRC says principal and non-principal guaranteed wealth management products issued by banks should not fall under shadow-banking. But this doesn't appear to address the risks.
Chinese trust companies are expecting the regulator to broaden the range of securities they are permitted to invest in, until they are eventually on a par with fund managers and securities firms.
Having been granted a Beijing branch licence, the US firm expects to see a big increase in Chinese demand for its asset services, including private-equity administration.