The wealth management subsidiaries of Chinese banks have seen robust profits in the first half of 2021, while the share of net-value wealth management products (WMP’s) continues to increase following the introduction of new asset management regulations in 2018.
The collective net profits of the wealth management subsidiaries of 16 listed Chinese banks was 9.906 billion yuan for the first half of 2021, already exceeding the full year figure for 2020 of 9.779 billion yuan, according to a report from Cailianshe.
At the majority of banks the share of net-value WMP’s is above 80%, while for some lenders it has already exceeded 90%, with the share of older products that fail to comply with new asset management regulations posting a simultaneous decline.
As of the end of June the outstanding WMP balance was 25.80 trillion yuan, according to figures from the “China Banking Sector Wealth Management Market Mid-year Report (2021)” (中国银行业理财市场半年报告（2021年上）) released by the Banking Sector Wealth Management Registration and Custodial Management Centre (银行业理财登记托管中心).
