China’s wealth management products total $2.62 tril

China’s wealth management products total $2.62 tril

Sunday, June 22, 2014 – 12:58


BEIJING – China’s wealth management products totalled 12.8 trillion yuan (S$2.62 trillion) as of the end of May, state media said, quoting the vice central bank head.

China’s market of wealth management products had grown at a rate of between 60 and 80 per cent annually for a few years before it decelerated to 30 to 40 per cent in 2013, Pan Gongsheng said in remarks published on Xinhua news agency on Saturday.

Fuelled by savers’ and companies’ thirst for higher returns, China’s wealth management sector has exploded in recent years. But the opaque nature of the sector has fed concerns about the industry’s health.

Pan said the authorities would do more to ensure the value of people’s financial assets are preserved and increased, according to Xinhua.

Regulation of the wealth management products market “should be strengthened to control risk and push forward the healthy development of the sector”, Pan was quoted as saying.

With China’s growth expected to slow to a 24-year low of 7.3 per cent this year, there are growing concerns about the level of risk associated with the financial sector.

In May, a deputy governor of China’s central bank, Liu Shiyu, said China should reorganise its wealth management industry as it is unduly raising funding costs and encouraging savers to behave like gamblers by chasing after lucrative short-term returns.


About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: