China Implements Regulatory Rating System for Wealth Management Companies

This article is reprinted from Liaocheng Daily

According to Xinhua News Agency Beijing on March 16th (Reporter Zhang Qianqian, Li Yanxia), the State Financial Supervision and Administration Bureau released the “Interim Measures for the Supervision and Rating of Wealth Management Companies” on March 16th. The measures aim to strengthen the classified supervision of wealth management companies, allocate regulatory resources reasonably, and promote the accelerated transformation and development of these companies. The Financial Supervision Bureau and its dispatched agencies will carry out supervision and rating work for wealth management companies in accordance with these measures.

A responsible official from the relevant department of the Financial Supervision Bureau stated that by the end of 2025, there will be 32 existing wealth management companies nationwide with a total wealth management product scale of 30.7 trillion yuan, accounting for 92% of the total market wealth management products. After more than six years of development, wealth management companies have achieved positive results through standardized transformation and have become an important part of China’s asset management industry. To further improve the regulatory system for wealth management companies and promote their continuous capability enhancement, it is necessary to formulate and implement this measure.

The measures specify the elements and methods for supervision and rating, establishing six rating modules: corporate governance, asset management capability, risk management, information disclosure, investor rights protection, and information technology. These modules are assigned weights of 10%, 25%, 25%, 15%, 15%, and 10%, respectively. The measures also include targeted scoring items, deduction items, and level adjustment factors to comprehensively evaluate the operation management and risk status of wealth management companies.