China drafts bar for net capital of banks' wealth management units

BEIJING (Reuters) – China released draft rules on net capital management of commercial banks’ wealth management units on Friday, a follow-up move to regulate the risk of country’s newly structured wealth management industry.

Net capital of commercial banks’ wealth management units should be no less than 500 million yuan ($70.54 million) or 40% of the units’ net assets, according to a draft rules released by the China Banking and Insurance Regulatory Committee (CBIRC) on its website.

Net capital of the units should be also no less than 100% of their risk capital, the CBIRC added.

The regulator unveiled in late 2018 long-awaited rules governing commercial banks’ asset management subsidiaries, relaxing the investment criteria of wealth management funds for banks, yet pending detailed regulations.

Reporting by Cheng Leng, Vincent Lee and Beijing Monitoring Desk; Editing by Raissa Kasolowsky

Filed in: Top News Tags: 

You might like:

Iowa pension ends $386 million money management contract with Kenneth Fisher Iowa pension ends $386 million money management contract with Kenneth Fisher
SEI Investments reviewing relationship with money manager Kenneth Fisher SEI Investments reviewing relationship with money manager Kenneth Fisher
AT&T, Elliott in talks after activist campaign launched: sources AT&T, Elliott in talks after activist campaign launched: sources
Goldman wants traders to be more like dealmakers and coders Goldman wants traders to be more like dealmakers and coders
U.S. stock funds see first weekly inflow in a month U.S. stock funds see first weekly inflow in a month
Your Money: U.S. teachers take hands-on approach to financial literacy Your Money: U.S. teachers take hands-on approach to financial literacy
Members of Los Angeles pension board ready to drop money manager Ken Fisher Members of Los Angeles pension board ready to drop money manager Ken Fisher
U.S. boutique banks woo French bankers in Paris advisory push: sources U.S. boutique banks woo French bankers in Paris advisory push: sources
© 2019 Stock Investors News. All rights reserved. XHTML / CSS Valid.