Senior officials from the Chinese central bank have expressed their hopes that the wealth management subsidiaries established by China’s commercial lenders will play a greater role in direct financing of real economic activity.
Tao Ling (陶玲), vice-head of the People’s Bank of China (PBOC) Financial Stability Department, said that research into the positioning of wealth management subsidiaries must focus on servicing the growth of the real economy.
According to Tao bank wealth management subsidiaries should “expand their direct equity financing role, employ their unique character as bank subsidiary companies, and engage in division of labour as well as cooperation with other institutions.”
Tao made the remarks in Beijing at the official ceremony for the China Wealth Management 50’s (中国财富管理50人) establishment of a bank wealth management forum.
Wang Jingwu (王景武), head of PBOC’s Financial Stability Department, said that the next step would be for banks to “explore wealth management subsidiary business models, improve professional capability, and nurture a cohort of internationally influential wealth management vehicles while pragmatically supporting the growth of the real economy.”