Box showing fast facts about foreign banks in China 2010China’s banking
regulator is expected to publish new draft rules on many aspects of
the wealth management industry from cross-selling to training
requirements within the next month.

Speaking at PBI’s Hong
Kong Forum
this month, Armstrong Chen, deputy director at the
supervisory rules and regulations department of the China Banking
Regulatory Commission (CBRC), said the proposed rules were designed
to help the wealth management market develop healthily, especially
around investment product sales.

The new rules will give foreign
banks greater clarity about the sales of wealth management products
into the onshore wealth market in China.

China’s onshore wealth market is
estimated to be about CNY14trn ($2.15trn).

 

Selling and cross-selling
covered

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The new rules are expected to cover
the selling and cross-selling of wealth management products and
derivatives.

Many private banks are eager to
expand their range of CNY-denominated investment products and
services but face an uphill battle gaining onshore market
presence.

Barclays Wealth this month joined
the list of foreign private banks, including HSBC, Julius Baer,
OCBC and DBS, that offer renminbi-denominated investment products
and services to high net worth clients.

 

Offshore renminbi market
expanding rapidly

Latest figures from the Hong Kong
Monetary Authority showed the RMB deposit base in Hong Kong was
CNY451.4bn at the end of March, up by almost 10% from the previous
month.

At the PBI Forum, Chen
also gave an updated overview of the Chinese banking market
illustrating how little penetration foreign banks have in
China.

CBRC said the total asset base of
all foreign banks operating in China was less than two% of China’s
banking total market.

According to CBRC, Industrial and Commercial Bank of China
manages about CNY4.54trn in assets, and accounted for roughly a
third of China’s wealth management market in 2010.

Bar chart showing China's top players in wealth management business