Commercial Banks Allowed to Directly Invest Wealth Management Product Proceeds in Stocks


New amendments to investment regulations permit Chinese commercial banks to directly invest the proceeds of wealth management products (WMP) into stocks.

The China Securities Depository & Clearing Corporation issued the “Special Institution and Product Securities Account Operations Guidelines” (特殊机构及产品证券账户业务指南) on the evening of 19 September, effective immediately.

The amended Guidelines expand the investment scope for commercial bank WMP’s, permitting direct investment in shares and listed funds.

The guidelines also make it easier for foreign nationals to obtain Chinese equity stakes as part of share incentive schemes.

Foreign nationals who are not qualified A-share investors but who satisfy key provisions of the “Listed Company Share Incentive Administrative Provisions” (上市公司股权激励管理办法) in relation to incentive targets are permitted to entrust listed companies with application for securities accounts.