Canada    FinTech Guide    Chapter 2    China


2. Asset and Portfolio Management
China  China

The asset management business is encouraged by the governments. Further, the government is very conscious in this area to prevent relevant risk.  FinTechs which have no finance licenses need to be very careful not to be engaged in any license required operations otherwise the entity without the proper license may be imposed serious penalties to ensure the stable finance environment.



Legal Affairs


Portfolio management is the art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance. Along with the development of finance technology, the asset and portfolio management has become more and more popular and efficient.

In recent years, the asset management business has developed rapidly in China and the great asset management era emerges. Currently, there are many asset management products provided by all kinds of financial institutions, such as banks, insurance companies, security companies, funds, etc.

In China, the regulatory mechanism depends on the identity/qualification of the entity which conducts such business. Therefore, the different asset management products are subject to different supervision of the authority which is in charge of the entity producing such products. For example, the Wealth Management Products and trust plan shall be supervised by China Banking and Insurance Regulatory Commission (“CBIRC”) while assets management products offered by security companies, funds, futures companies etc. shall be subject to the supervision of China Security Regulatory Commission (“CSRC”).

There is no uniform license/supervision on the general asset management services. When FinTechs are engaged in specific asset management services and offer specific products to the customers, it shall obtain the specific license for such products. In practice, most FinTechs in this area hold one or more financial licenses in order to conduct the relevant business.



Economic Conditions


According to the prediction of GCG, the total amount of asset management in China would be more than RMB 17.4 billion in 2020. The annual growth rate would be about 17%. Such rapid development is based on the increasing of economy of China, the acceleration of personal assets, development of FinTech, encouragement of authorities, and active transformation of banks.


Contributing Authors

JunHe LLP

Norah Yinuo Zhang
Beijing, China

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Chapter Index:


1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

Disclaimer:
The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 August 2019