China’s big state-owned banks are using their wealth management subsidiaries to raise funds for efforts to combat the spread of the coronavirus.
The wealth management subsidiaries of at least several big state-owned banks have issued wealth management product (WMP) to help efforts to contain or mitigate the impacts of the coronavirus.
One category of WMP is directed specifically at people affected by the spread of the coronavirus, including medical professionals and customers in Hubei province, aiming to mitigate their financial difficulties by providing them with higher yields.
The wealth management subsidiaries of Bank of China (BOC) and Agricultural Bank of China (ABC) have both issued such products, providing yields of between 3.9% and 4.1% and product terms of 142 to 147 days.
The second type of coronavirus WMP is available to clients throughout China, and used to raise funds for directly contributing to efforts contain the coronavirus, by measures including investment in medical provision companies.
At least several big state-owned lenders have raised over 5 billion in funds for coronavirus containment efforts via such WMP’s, including Bank of Communications (3 billion yuan in funds), ABC (1.7 billion yuan) and ICBC (500 million yuan).