Chinese banks to find it costly to issue wealth management products this year

Regulators are tightening rules on WMPs.

Natixis expects less cushioning from fee income as banks will find it more difficult/costly to issue wealth management products (WMPs).

Chinese banks have expanded business in fee income in response to interest rate liberalization, which has resulted in lower rate and net interest margin.

The key factor of future profitability is regulation. PBoC will include assets behind WMPs in its Macro-Prudential Assessment (MPA) from 2017 Q1, while CBRC will tighten rules on WMPs such as requiring banks to set aside capital for provisioning.

This poses restrictions on banks in the ability to issue further. In particular, funds and securities firms have already overtaken banks as the larger drivers for the WMP issuance in S1 2016.

Also Read

Citi appoints new sales head for key Asian markets

Natixis CIB appoints new APAC equity derivatives head

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

Top News

What is Lorem Ipsum?

What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Evergreen Group obtains financing license to expand in Malaysia