Bank of China Wealth Management Co., Ltd. (Bank of China Wealth Management), a wholly-owned subsidiary of Bank of China, was recently fined 12.9 million yuan for various violations including inadequate management of non-standard debt investment.
On June 27, the China Banking and Insurance Regulatory Commission disclosed the administrative penalty information, showing that Bank of China Wealth Management was fined for deficiencies in the management of non-standard debt investments. The violations included improper concentration of investment in wealth management products, lack of liquidity compliance with regulatory requirements, and inadequate information registration management.
According to an official response from Bank of China Wealth Management, the company was penalized due to issues discovered during an on-site inspection of its wealth management business in 2023.
In response to this incident, prominent economist and member of the Information and Communication Economy Expert Committee of the Ministry of Industry and Information Technology, Pan Helin, warned wealth management product purchasers through the “Daily Economic News” on June 28. He emphasized the need for caution in non-standard debt investments, recommending investors to thoroughly understand the underlying assets of wealth management products and make investment decisions based on the risks associated with these assets. For unsafe non-standard debt investments, Pan Helin advised following the principle of not participating if unfamiliar, in order to better mitigate risks.
Public information indicates that Bank of China Wealth Management Co., Ltd. was established on July 1, 2019, and primarily engages in asset management-related businesses such as public offering of wealth management products, private placement of wealth management products, wealth management consultancy, and advisory services.