New rules enable WMPs to be invested in stock market

The China Securities Depository and Clearing Corporation (CSDC) has released a revised version of guidelines for special agencies and product securities account businesses, enabling wealth management products (WMPs) to be directly invested in the stock market from Wednesday.

The new guidelines have comprehensively adjusted account opening requirements for asset management products in accordance with recent regulatory policies.

According to a statement on the official CSDC website, restrictions on the opening of securities accounts for commercial bank WMPs will be eased, and the account opening application process will also be facilitated after the revision.

Media reports noted that the Ashares market will become more attractive thanks to the revision.

Mark Leung, CEO of JPMorgan Chase China, also expressed his confidence in China’s stock market despite a lack of confidence among investors.

Leung said during the 2018 Summer Davos forum held in North China’s Tianjin Municipality that there is an oversell in emerging markets, underlying opportunities for investors, and much of the opportunities are in China, especially as the country has been ramping up efforts to open up its financial sectors.

Some of China’s main efforts including the newly established Shanghai-London Stock Connect and a new settlement system aim to connect the bond investment scheme between the mainland and Hong Kong.

Leung pointed out that in the first half of 2018, the net inflow of foreign investment into China reached $43 billion, which is partly due to A shares’ inclusion in the MSCI.