Major Chinese banks have seen a sizeable decline in their agency sales of funds in the first half of 2019, as Sino-US trade tensions and stricter asset management regulations take their toll on the sector.
Data from Dongfang Caifu (东方财富) indicates that as of 7 September the Chinese market was host to a total of 493 fund agency sales entities, including 157 banks, 118 brokerages, as well as 218 independent or third party entities.
Mid-year financial reports indicate that many Chinese banks have seen a sizeable decline in their sales of funds in the first half, as both external and regulatory factors impede demand.
Industrial and Commercial Bank of China (ICBC) posted 318.7 billion yuan in fund agency sales in the first half of 2019, for a decline of 90.6 billion yuan, or 22.14%, compared to sales of 409.3 billion yuan for the same period last year.
Agricultural Bank of China (ABC) saw fund agency sales of 134.573 billion yuan in the first half, for a YoY decline of 58.65% compared to the 325.3 billion yuan in sales for the same period in 2018.
Amongst joint-stock commercial banks China Merchants Bank saw 306.697 billion yuan in agency sales of open funds in the first half, for a YoY decline of 37.39% as a decline in yields for money market funds put a dent in demand.