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BIZCHINA / News |
Banks told to educate investorsBy Mao Lijun (China Daily)
Updated: 2008-01-03 09:51 The banking regulator issued guidelines yesterday encouraging commercial lenders to educate investors as more financial products are added to the country's nascent market. The China Banking Regulatory Commission (CBRC) also said it would promote public understanding of modern finance, try to reduce financial crimes and keep the financial market stable. The regulator said more investor education was needed as new financial products come onto the market - including funds, trusts, qualified domestic institutional investor (QDII), foreign exchange and comprehensive wealth management. The CBRC will set up a system to encourage and facilitate investor education. Commercial lenders are being urged to provide more investor resources including introductory brochures and other information. "Customer education is the key," said Chen Zuofu, vice-president of China Construction Bank. The bank reported a 778 percent increase in funds sales in the first half of 2007. "Banking clients want more information. We need to set up channels to provide this key financial knowledge," said Fan Zhanli, a client manager at Everbright Bank Group. The regulator said it would strengthen supervision to stabilize the financial market and facilitate financial investment. It has also urged banks to improve risk management and set up monitoring systems to uncover crimes. By the end of 2006, 30 Chinese banks were offering wealth management services, with a total investment of 130 billion yuan. Demand for individual financial services is growing. "Educating and guiding investors to cope with financial uncertainties and investment risks is crucial at this stage of the market's development," said Shi Jianping, assistant president of the Central University of Finance and Economics. |
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