CSRC official, China's capital market already an important platform for wealth management

At the Fourth China Private Banking & Wealth Management Forum held yesterday in Shanghai, Tu Guangshao, vice chairman of the China Securities Regulatory Commission, said that in spite of its limited scale, China's capital market has become an important platform for wealth management and China should seize the opportunity of current rapid wealth growth, strengthen and expand its capital market, and most of all, establish risk control mechanisms concerning the development of stock index futures, reform in existing investment systems and avoidance of investment risk.

With the growth of China's capital market, closer and closer links will be forged between the capital market and wealth management. Tu outlined three major roles of the capital market in wealth management:

First, the capital market is an inevitable product when wealth and the pattern of wealth distribution develop to a certain phase;

Second, the setup of a capital market in turn enrich the content and form of wealth growth and management;

Third, China's current capital market also serves as a basic platform for wealth management.

In addition, Tu pointed out that wealth management called for a larger and structurally-sound capital market which can satisfy different demands and provide diverse products, a functionally better capital market equipped with sound risk control mechanisms, a market-driven capital market which is more opened up and goes in line with international practices, a better-regulated market which can stem vicious competition and create a fair market environment, a highly-efficient capital market that can better serve the purpose of wealth management.

Full of risks and uncertainties, the capital market will have a sounder structure and more tools as it grows. Therefore, wealth management also needs to adapt for the changes in the market. Tu thought, China has to develop an institution-based, professional and diversified wealth management platform. As China further opens up its capital market, an international perspective is also important for wealth management.