Thread by @ChinaFinance40

The basic role of the #wealth management subsidiary of commercial banks should be providing safest financial products for customers, said Liu Xiaochun in a recent event organized by CF40: mp.weixin.qq.com/s/Uai71tfGQAwm…

Compared with risk pursuing investors, people who tend to buy banks’ financial products are those who want to keep their money safe, which indicates the first and foremost role of commercial banks should be providing the most conservative and safest financial products.

Commercial banks should focus on helping customers choose safe assets instead of helping investors “look for” assets or “raise capital.” It is asset allocation not investment that banks deal with for its customers in most cases.

Commercial banks’ wealth management subsidiaries should be cautious carrying out credit business which can increase risk. Neither should them become a new channel for parent banks to escape restrictions on credit scale.

In the meantime, commercial banks’ wealth management firms should separate its operations and management, and increase competitiveness by getting more involved in the market. #bank