China Minsheng Bank has teamed up with Huaxia Wealth Management to launch a new type of bespoke fixed income product on the domestic asset management market, amidst an increase in cooperation between Chinese financial institutions.
Minsheng Bank’s first bespoke wealth management product will be issued and managed by Huaxia Wealth Management Co., Ltd. (华夏理财有限责任公司), and only be available for sale to Minsheng Bank retail customers.
100% of the funds raised from the new product will be used to invest in fixed income assets including high-quality credit bonds and non-standard creditor’s rights.
While it is already common for banks in China to provide bespoke funds on an exclusive sales basis for fund companies, the agency sale of bespoke wealth management products by banks has only recently become popular following the rapid growth of wealth management companies.
“Huaxia Wealth Management’s line of fixed income products will help Minsheng Bank to strengthen its image as a specialist in asset allocation,” said one industry insider to state-owned media.
“At the same time, Huaxia Wealth Management will be able to actively search for high-quality project resources and support the development of the domestic real economy by making use of the cooperative advantages offered by the bank and its branches.”