Regulation informs banks' asset forays

The new draft regulations for financial institutions' asset management business will lead to further differentiation among banks offering such services, academics said.

The future of banks' asset management business will depend on their expertise in the field, they said.

Zeng Gang, director of banking research at the Institute of Finance and Banking, which is part of the Chinese Academy of Social Sciences, said new regulations require asset managers to have stronger professional skills. This will help increase differentiation of the business segment.