China's Fund Managers Challenged as Banks Wade Into Industry
- Wealth management units stand to benefit from new rules
- The entities can leverage parents’ wider network of clients
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China’s new rules for the wealth management units spun off from its gigantic banks could help them grab market share in the $15 trillion fund industry.
Regulations that took effect this week removed minimum investment levels and permitted the entities to invest directly in stocks, putting them in a position to claw business away from other asset managers. Previously the funds could only be directly invested in fixed-income products, limiting the scope for returns.