BEIJING, June 22 China's wealth management
products totalled 12.8 trillion yuan ($2.06 trillion) as of the
end of May, state media said, quoting the vice central bank
China's market of wealth management products had grown at a
rate of between 60 and 80 percent annually for a few years
before it decelerated to 30 to 40 percent in 2013, Pan Gongsheng
said in remarks published on Xinhua news agency on Saturday.
Fuelled by savers' and companies' thirst for higher returns,
China's wealth management sector has exploded in recent years.
But the opaque nature of the sector has fed concerns about the
Pan said the authorities would do more to ensure the value
of people's financial assets are preserved and increased,
according to Xinhua.
Regulation of the wealth management products market "should
be strengthened to control risk and push forward the healthy
development of the sector", Pan was quoted as saying.
With China's growth expected to slow to a 24-year low of 7.3
percent this year, there are growing concerns about the level of
risk associated with the financial sector.
In May, a deputy governor of China's central bank, Liu
Shiyu, said China should reorganise its wealth management
industry as it is unduly raising funding costs and encouraging
savers to behave like gamblers by chasing after lucrative
(Reporting by Sui-Lee Wee; Editing by Nick Macfie)