Name
Global FinTech Guide
Country _ Name
China
SectionTitle
Asset and portfolio management
Body
FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.

Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.

Introduction

Attitude of the country towards modern asset and portfolio management services

With the rapid development of FinTech, business of asset and portfolio management is in the process of remodelling. In China, the financial institutions engaging asset management business keep increasing their investment in FinTech in order to have an advantage in data collection and collation, risk control and personalisation; the regulatory authorities have also imposed more detailed regulatory requirements on the asset and portfolio management services.


Legal affairs

Obligations and requirements to provide asset and portfolio management, or ancillary services described above

Entities engaged in asset management shall be divided into two (2) categories in terms of regulation. The first category is financial institutions regulated by the National Financial Regulatory Administration (NFRA), including but not limited to, banks, trust companies and insurance companies. The second category is financial institutions regulated by the Chinese Securities Regulatory Commission (CSRC), including but not limited to, fund management companies, securities companies, and private equity institutions. There is no unified license/supervision on the general asset and portfolio management services, but the entities engaging in asset management services shall be the said financial institutions and hold relevant licenses. With respect to the operation of online asset management business, the authorities have also issued a series of regulations to impose strict requirements in the aspect of the protection of personal information, platform anti-monopoly, webcast marketing etc.

For unlicensed institutions, NFRA and CSRC have strictly restricted them from engaging in providing asset and portfolio management services and have particularly strengthened the supervision of online asset and portfolio management business. For example, one of the Monetary Policy Implementation reports released by the PBOC points out the necessity of clearing out unlicensed online asset management institutions. In particular, the PBOC has made clear that the foreign asset management institutions, without a proper Chinese license, shall be deemed as unlicensed institutions, which shall not be allowed to carry out asset management business in China (especially through online platforms). 

Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

It is worth noting that the Chinese authorities have started to clean up the asset management products designed as the 'rigid payment' (i.e. the financial institutions guarantee principal and income for the products) since 2018 through the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (the Opinions). With the four-year rectification period for all the financial institutions, no 'rigid payment' asset management product is allowed to be existing by today. Upon the issuance of the Opinions, all market players have made the material internal adjustment with respect to the products and operation rules to satisfy the requirements of the Opinion, which have deeply changed the market circumstance and regulatory system of the asset management business. Currently, the 'rigid payment' asset management products have exit the market, and net value-based management products are rapidly increasing, with their market share rising from 40% (before the issuance of the Opinion) to 95.47% (after the four-year rectification period). High-risk practices such as multilayer products and fund pool operations have been cleaned up.
Further, the Chinese authorities have launched the 'Cross-Boundary Wealth Management' pilot project in the Greater Bay Area of Mainland China (GBA), Hong Kong and Macao in 2021, allowing investors in GBA to purchase the products sold in Hong Kong and Macao, and vice versa. It is an important breakthrough in the development of cross-border asset management business. In 2024, the relevant authorities have issued the new implementation rules to lower the requirements for individual investors to participate in such project. As of May 2025, there are 157,900 individual investors participating in the 'Cross-Boundary Wealth Management' pilot project, including 105,400 investors from mainland China, with RMB 115.035 billion (equivalent to approximately USD16.07 billion or EUR13.75 billion) invested in the Hong Kong and Macao markets.

Last, with the development of the private equity fund, the Chinese authorities noticed the necessity of integration of relevant laws, regulations and guidance, accordingly, the State Council has formulated the first administrative measure for the management of private equity fund in September 2023. Together with such administrative measure, the Chinese authorities has also published and updated a series of rules and guidance in 2023. FinTechs in this area should be cautious about their business operation and about keeping compliance with the latest rules.


Economic conditions

Market size for asset and portfolio management services and biggest companies in this business area

According to the data published by China Trustee Association, China Wealth, Asset Management Association of China, Insurance Asset Management Association of China, the status of each asset management sub-sector is as follows: (i) at the end of 2024, the balance of the assets managed by the trust companies is RMB29.56 trillion (equivalent to approximately USD4.13 trillion or EUR3.53 trillion) (Source: China Trustee association,
http://xtxh.net/xtyxh/upload/pdf/1749200613208-2024nianduxintuogongsizhuyaoyewushuju%20.pdf , June 2025); (ii) at the end of 2024, the balance of the assets managed by banks is RMB29.95trillion (equivalent to approximately USD4.19 trillion or EUR 3.58 trillion) (Source: ChinaWealth.com.cn, https://www.fxbaogao.com/detail/4677362, January 2025); (iii) at the end of 2024, the scale of asset management business of the public fund management, securities and futures management, private equity fund management is about RMB72.85 trillion (equivalent to approximately USD10.18 trillion or EUR8.70 trillion) (Source: Asset Management Association of China, https://www.amac.org.cn/sjtj/datastatistics/comprehensive/zcglhybg/202503/P020250313612690945705.pdf. March 2025); and (iv) at the end of 2024, the cumulative registered scale of asset management business for insurance fund management is RMB33.26 trillion (equivalent to approximately USD4.65 trillion or EUR3.97 trillion) (Source: Insurance Asset Management Association of China, https://iamac.org.cn/xxyj/hyxw/202502/t20250227_9217.html, February 2025).

According to the Top 500 Asset Managers 2024 published by Investment & Pensions Europe (IPE), China Life Asset Management Company Limited ranks first in China and 32nd worldwide with total assets of about RMB5.37 trillion (equivalent to approximately USD750 billion or EUR640 billion) by the end of 2023.

Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

The Opinions and other detailed rules have imposed the same requirements on the different types of financial institutions engaging the asset management business. It is conducive to the healthy development of the entire asset management industry, but it also brings more challenges to the business. With the understanding that net asset value-based management products may be valued lower than their net value, customers are more cautious about their investments today. Asset management companies have taken measures such as gathering more information about investors, enhancing the evaluation process of investors' risk preferences and tolerance, providing accurate information about asset management products and associated risks, and recommending suitable products to appropriate investors. These efforts aim to guide customers towards accepting net asset value-based management products.



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