News
China Development Newsletter Issue No. 1 - July 2010
20 Jul 2010Use of trust products in Wealth Management in China
History of Wealth Management business among Chinese banks
It all started in early 2004, and had much blossomed in the bullish markets during 2006-7 when banks’ wealth management products mainly focused on A-share IPO issues. Bank-type QDII products were also developed around that period. With the cessation of A-share new listings in 2008, IPO-related wealth management products had lost much of its glamour. Banks started to collaborate with securities companies, fund houses and also trust companies etc to diversify their investment product range. Facing market uncertainty and volatility in 2008, banks also devised alternative products linked to gold, wine, tea leaves, carbon emission rights etc in a bid to tap new sources of fee incomes. At present, banks are on equal footing with securities companies and fund houses in terms of sharing the wealth management market in China.