China upholds bank financing product ban for stock investment  

银行理财产品资金不能炒股 银监会新规被误读

一则有关“银监会新规使万亿理财资金入市”的消息日前让不少股市淘金的人倍感兴奋。不过，北京青年报记者昨天从业内人士处了解到，这一征求意见稿对银行理财资金不能投资于境内二级市场股票等的相关规定未有任何改变。 [查看全文]

(ECNS) -- The Chinese banking sector will facilitate direct investment in wealth management products, but not in domestic secondary stock markets, according to a newly released draft regulation.

Based on the draft regulation 'Supervision and management measures for commercial bank wealth management products', China will allow commercial banks to open capital and securities accounts independently to encourage direct investment in financial management. However, direct investment is not direct financing; it is not a direct route to enter the stock market.

Previous provisions issued by the China Banking Regulatory Commission (CBRC) indicated that only high-net-worth clients, private bank clients and institutional customers would not be constrained by such restrictions. The new regulation does not offer substantial adjustment.

To realize a direct channel for banks and capital trade markets, banks could set up wealth management plans and direct financing tools. This measurement could lower financing costs and better service the real economy.