One of China’s big state-owned banks is teaming up with a leading Beijing-based investment bank to launch a new range of investment fund products.
On 11 May China Construction Bank (CCB) and China International Capital Corporation (CICC) announced the joint launch of a new “customer-focused innovation product” – the “Wealth Housekeeper Plan” (财富管家计划).
The Wealth Housekeeper Plan consist of a series of investment fund products free of management or transaction fees, and that are remunerated solely on the basis of performance.
Sun Na (孙娜), general manager of CCB’s personal banking department, said that Wealth Housekeeper was a “major innovation” in the wealth management era, building upon the bank’s long-standing historic ties to CICC.
CCB is the first commercial bank in China to obtain qualifications to act as an agent seller of mutual funds, and as of the end of 2020 sold over 3000 fund products for more than 70 fund company partners to in excess of 50 million wealth management clients.
Publicly offered mutual funds have seen rapid growth in China over the past several years, with 3 trillion yuan in issues in 2020, over 60% of which were from equity funds.
Growth has been spurred by the launch of new asset management rules in 2018 which removed the “implicit guarantees” on bank wealth management products (WMP’s), driving funds towards equity investment channels.