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Wealth products become key investor in China's financial market

BEIJING
2019-03-04 11:00

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BEIJING, March 4 (Xinhua) -- China's wealth management products have become an important investor in the country's financial market, according to a statement on the website of the China Banking and Insurance Regulatory Commission (CBIRC).    

Issuance of such products has grown rapidly in recent years. At the end of 2018, the balance of bank wealth management products stood at 32 trillion yuan (about 4.7 trillion U.S. dollars), up 2.5 trillion yuan, or 8.5 percent, from a year earlier.    

Almost 70 percent of the funds raised through wealth management products are invested in bonds, deposits and money market instruments.  

 The strong growth in such products in recent years has been supported by the higher yield they offer investors compared with the regulated ceilings on deposit rates, and a desire among banks to obtain more funding.    

The country will guide the funds raised through wealth management products to invest in the financial market in a lawfully way, in a bid to promote the development of direct financing and improve the country's financial system, said Li Wenhong, an official with the CBIRC.
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