Development Status And Problems Of The Wealth Management Industry

The rapid increase of wealth in China generates high levels of demand forwealth management. Commercial banks, securities companies, fundcompanies, trust companies, insurance companies and many other financialinstitutions as well as third-party financing, internet banking and otherquasi-monetary financial institutions are entering the market with their owncharacteristics. However, when compared with foreign wealth managementindustry, domestic wealth management industry has some gaps in terms ofphilosophy, proactive management of products and professionals. Theconflict between wealth management consolidated operating and separateoperating mode is increasing. There is also a regulatory vacuum in someareas. These two factors together caused the wealth management industryconsumer protection deficiencies. This paper first analyzes the status ofdomestic wealth management business, market position and the overallsupervision of the situation, and then press the different institutions, namelythe analysis of commercial banks, securities companies, fund companies,trust companies, insurance companies, third-party financing companies,private equity (PE) development and regulatory status of the wealthmanagement business. This paper summarizes the domestic wealthmanagement business from the presence of the current difficult caveat emptor,product design and unfair acts against the benefit of consumers and to upholdthe benefit of customers first and put forward the principle of product design,cultivate proper financial management concepts such as consumer advice.