Measures to boost wealth management products' competitiveness

China's banking and insurance regulator said it will allow commercial banks' wealth management subsidiaries that are yet to be established to directly invest in public offering wealth management products they issue in the stock market.

This new rule is part of the administrative measures for the wealth management subsidiaries of commercial banks. Announced by the China Banking and Insurance Regulatory Commission on Sunday, the measures will increase the competitiveness of WMPs provided by these subsidiaries, compared with the existing WMPs of commercial banks, analysts said.

The latest measures stipulate that public offering WMPs issued by the subsidiaries should mainly be invested in standardized debt assets and listed stocks. The balance of investments in non-standardized assets should not exceed 35 percent of the net assets of WMPs.