A Study Of Development And Returns Of Wealth Management Products Of Commercial Banks In China

2004witnessed the commencement of wealth management products in China,which have achieved marvelous development. Only a decade after, wealthmanagement products have bloomed in China. With regard to types, operation modes,issuers, the amount, and the scale have all realized a leap. By the end of2014, thereare over400banks issued about64thousand wealth management products and raisedaround45trillion yuan. Wealth management products are among the most importantinvestment kinds,and,meanwhile, the one of main tools to absorb position for banksystem.In terms of the money, the scale of wealth management market expanded overhundred times. This development is highly correlated with the growth of economy inChina. As a result, some Chinese characteristics are unignorable for the laterdevelopment and design of wealth management products. Additionally, at the sametime of financial products market development, a lot of problems also appeared. Forexample: the lack of a standard commercial bank financial products supervision, theassimilation of many financial products and etc. So what factors should the investorspay attention to? How these factors influence the return rate of financial product?These are the focus of this paper.In the first place, this paper summarizes the characteristics in various aspects ofthe rapid development of financial products market, provides basic information forin-depth study. Secondly, makes regression analysis and verify hypothesis. The structure of this paper is following. Section one is the introductionconcerning background and significance and makes a explanation the effect of wealthmanagement products in shadow banking system as well as its relation withgovernment debt. At last, an literature review in regards to shadow banking systemand wealth management is made. Section two makes a brief summary of thedevelopment of wealth management market in China. Section three gives a macrooutlook of status quo of wealth management market in this country. Including issueamount, size of market, issue institutions, investment term, secondary market and soon. Section four includes the empirical study of770dollar wealth managementproducts of2014and conclusion. According to empirical results, the return of wealthmanagement is positively correlated with rate of one year treasury note, investmentterm and volatility of exchange rate and is negatively correlated with principalguarantee, float rate and structural products. Section five is the last part of this paper,which makes conclusion and suggestions from regulation, investor protection anddevelopment of secondary market.