Research On The Development Of Personal Wealth Management Business For China Merchants Bank

Since the reform and opening-up in 1978, China's economy has developed rapidly. The residents' income level and living standard has improved to a great text and their concept about investment and wealth management is no longer confined to deposit. With the constant growth of wealth and the decline of Engel's Coefficient, the residents have proposed some requirements for the efficiency of surplus wealth. In addition, with China's accession to the World Trade Organization, all industries of our country become more open than ever and the foreign banks break into the Chinese market in an endless stream. Commercial banks are presented with new challenges owing to the transformation of the residents' wealth management concept and the alteration of international and domestic situations; the financial reform has never ceased in China and the decrease of traditional loan-deposit spread is a huge problem facing the commercial banks in this context. The bank's profit margins are narrowed constantly and it's required to expand new business to make up for the disappeared profit, while the personal wealth management business of commercial banks is able to create new profit growth point and improve the bank's revenue and expenditure structure to some extent. Therefore, the personal wealth management business of Chinese commercial banks emerges as the times require.Since its birth, the personal wealth management business of China's commercial banks has maintained a rapid growth and the year of 2014 witnessed a new record in the issuance quantity and scale of personal wealth management product. China Merchants Bank is one of the best in our country about Personal Wealth Management Business. It's has created the well-known brand “Sunflower”, wining broad recognition from the customers. Although the personal wealth management business has developed swiftly, it has a short history after all. Meanwhile, the personal wealth management business is hindered by the constraint of the whole economic environment and the bank factors; the personal wealth management business of commercial bankis confronted with many problems. According to SWOT analysis about China Merchants Bank of Personal Wealth Management Business, it has found that risk management and use of new technology are not enough. It's has bad effect to its competition. However, the most important reason why the wealth management products are popular is that they rely on the commercial banks' risk control and enjoy advantageous superiority in marketing channel. So China Merchants Bank must make some change about these disadvantages.This paper first introduces the theory on personal wealth management and then situation of the personal wealth management business of China Merchants Bank and our country. Through a case analysis of China Merchants Bank, this paper introduces the bank's product type, carries out a specific exploration into the current development of China Merchants Bank through SWOT analysis and delves into the bank's advantages, disadvantages, opportunities and threats in personal wealth management business. In combination with the bank's practical situation and the whole financial environment, this paper proposes some countermeasures and suggestions and makes a prediction over the future development of personal wealth management business.