Returns on Chinese Bank Wealth Management Products Decline for 19th Consecutive Month in September


Returns provided by the wealth management products (WMP’s) supplied by Chinese banks have continued their long streak of declines following the launch of new asset management regulations in early 2018.

A report from Securities Daily indicates that the rate of return on bank WMP’s in China posted a 2 basis point month-on-month decline in September to 3.84%.

Securities Daily based its calculations on data from PY Standard’s “September Nationwide Bank Wealth Management Market Index Report” (9月份全国银行理财市场指数报告) and data from the Rong360 Big Data Research Academy.

The September decline marks the 19th consecutive month that returns on bank WMP’s in China have posted an on-month drop.

China launched new asset management regulations in February 2018 that removed the “implicit guarantees” on WMP’s sold by Chinese banks, in order to prevent their use as a covert means of providing higher rates to depositors.