Research On The Problem And Countermeasures Of The Development Of Commercial Banks' Financing Business In China

With the rapid development of Chinese economy,residents' wealth has been accumulated.Moreover,commercial banks have maintained a low interest level for the recent several years(especially after the interest cut in 2015).Such circumstances witnessed a steadily rapid growth in financial products of commercial banks and an explosive increase after the year 2011.However,under such circumstances,commercial banks in China have also run into a series of problems,such as the pricing,risk management and sales of financial products.These factors cause many potential risks for commercial banks.Therefore,in line with the logic of “detecting problems,finding problems and solving problems”,the paper researches into the problems of wealth management business of commercial banks in China and proposes solutions accordinglyIn view of this,the main contents of this study are listed as follows.Firstly,the data of the development of wealth management business of domestic and foreign commercial banks,relevant laws,regulations and policies,as well as relevant internal data of Bank A in recent years are surveyed and sorted out;based on the above data,such problems of financial products of commercial banks in China are detected and found as large scale,serious homogeneity,unreasonable pricing,weak risk control,lack of protection of clients' rights and interests,narrow sales channels and unreasonable asset allocation,etc.On this basis,the paper digs out the root causes of the above problems and finds that such factors as lax government supervision and management,commercial banks' appeal for interests,unreasonable product design and pricing,intense market competition,and inadequate investor education can cause rising risks to wealth management business of banks to some extent.Secondly,take HSBC as a typical research sample,the study intends to find out and reveal the characteristics of bank wealth management by referring to the maturity model of foreign commercial banks.Through research,it is found that HSBC's wealth management business has multiple advantages that can be referred to and learnt from by commercial banks in China,such as relatively more scientific and reasonable pricing of financial products,various kinds of financial products and reasonable sales channels.Finally,through in-depth analysis of these problems,the corresponding countermeasures are explored.Based on the above research and analysis,the paper puts forward the following countermeasures and suggestions.Firstly,strengthen the external legal supervision of wealth management business;secondly,enhance the innovation in distinctive and personalizedproducts;thirdly,improve the pricing capability of wealth management products;fourthly,subdivide the wealth management market;fifthly,broaden sales channels with technology;sixthly,establish a dynamic risk control process;seventhly,improve the entry standards of practitioners.Overall,these proposals have been well practiced in many foreign commercial banks,and the results are worthy of recognition,with a view to raising the level of wealth management of banks in China.