The last two years have been tough for China’s life insurers. Regulations that were introduced in late 2010 and early 2011 have made it much harder to sell products through branches of banks according to the bancassurance model. The insurers’ products have also suffered as a result of stiff competition from various quarters. However, various new policies that have been announced by the China Insurance Regulatory Commission (CIRC) through late 2012 should make it easier for the life insurers to boost their premiums and to increase their investment assets under management (AUM).
Update alerts
Investors remain positive about wealth management products
10 Apr
Retail investors remain confident about bank wealth management products (WMPs) despite growing regulatory concern and a number of high-profile defaults in recent months, according to new China Confidential survey data. This suggests that a sell-off of WMPs by retail investors is unlikely in the short-term, although there are signs that wealthier investors may be slightly less enthusiastic about WMPs than they were six months ago.
China tightens rules on wealth management products
27 Mar
The China Banking Regulatory Commission (CBRC) announced on Wednesday its most significant attempt yet to rein in the riskier aspects of a ballooning wealth management product (WMP) market that had Rmb7.6tn under management at the end of 2012. We think the new measures – which target the most opaque forms of WMP – may significantly affect the business of those banks which have sold a high proportion of non-principal protected WMPs. We also think that the moves may divert funds away from the shadow financial system and into formal assets such as stocks and bonds.
Follow the Money – May 16 May
The end of the bull run? 16 Apr
QDII2 – Just talk, for now 21 Feb
Back into underground banks 15 Dec
Bond bears at bay 15 May
Fast convertibles 21 Feb
Banks to the fore 18 Jan
Trading in RMB grows
As China continues to internationalise its currency, a small but growing number of multinationals are now using renminbi in cross-border trade.
Denise Law is a researcher for Renminbi Compass in Hong Kong. (4m 13sec)
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CHINA CONFIDENTIAL
An integrated research service from the Financial Times that provides premium, exclusive analysis and predictions on China investment themes.
Using a dedicated FT team of specialists in China and the UK, it taps Chinese sources from the grassroots to the political elite to forecast key trends and issues. It conducts proprietary research to supply its own insights into industry trends and consumer sentiment. By filtering the work of the best Chinese analysts and academics, it keeps you current on key debates as they unfold inside mainland China. Its broad aim is to help the professional investor navigate through the Chinese investment landscape.
