CBIRC to issue new rules on wealth management subsidies
Subsidies can issue products which use no more than 35% of net assets to invest in those debt assets, compared with the previous 4% limit
The China Banking and Insurance Regulatory Commission officially released its new regulations on commercial banks’ wealth management subsidies on Sunday night, Yicai.com reported.
The new rules are basically consistent with the previous draft version, which stipulates that the minimum registered capital of wealth management subsidies is 1 billion yuan (US$140 million).
Meanwhile, wealth management subsidies are allowed to issue products which directly invest in the stock market.
The ceiling of investing in debt assets not traded in the interbank market or stock exchange market, including credit assets, trust loans and banker’s acceptance, has also been relaxed.
Wealth management subsidies can issue products which use no more than 35% of the net assets to invest in those debt assets, compared with the previous 4% limit.
Also, banks cannot park more than 20% of their funds in a subsidy to issue wealth management products. The funds for investing in a single wealth management product should not exceed 10% of banks’ own funds.