Banks are moving quickly to lower the investment threshold of publicly-funded wealth management products to 10,000 yuan, in response to new regulations regarding commercial bank services, Chnfund.com reported.
According to the new rule launched on September 28, when commercial banks issue wealth management products to the public, the starting price offered to a single investor shall not be less than 10,000 yuan, compared to the previous 50,000 yuan threshold.
The China Construction Bank has become the first to lower the starting price of one of its RMB wealth management products to 10,000 from 50,000 yuan.
The Agricultural Bank of China said it will also cut the threshold price of 43 wealth management products from October, covering various types of wealth management products linked to cash, stock indexes, white sugar, gold futures and foreign exchanges.
China Merchants Bank also plans to make bulk adjustments to the starting price of cash management products selling to individuals, private banking and corporations.