(MENAFN- Asia Times) The China Banking and Insurance Regulatory Commission has released much-anticipated draft rules on commercial banks' wealth management products as it moves to improve the investment operation system,
According to the new regulations, institutions handling securities and futures should adopt a diversified investment portfolio, and are subject to the 'double 20%' ratio restriction.
That is, a collective asset management plan is not allowed to park most of the funds in one wealth management product (WMP). The funds invested in one WMP shall not exceed 20% of the net asset value of the plan.
Meanwhile, all asset management plans managed by one financial institution are not allowed to invest more than 20% of the assets in one WMP.
Also, non-standard investment in bank WMP's is not allowed to exceed 35% of the net assets of the WMPs or 4% of total bank assets.
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