The peak body for the Chinese banking sector has outlined a range of recommendations for strengthening financial literacy amongst consumers, as well as improving consumer rights protections.
On 15 March the China Banking Association (CBA) released the “Bank Wealth Management Investors Education and Protection Proposal (银行理财投资者教育保护倡议书), for the purpose of “further guiding general investors in establishing a correct understanding of wealth management products and investment, and establishing harmonious, win-win financial consumer relations.”
The recommendations include:
- Guiding investors in deepening their understanding of wealth management products, and studying and understanding basic investor knowledge.
- Guiding investors in establishing correct wealth management concepts, correctly understanding the basic investment principle that risk and reward correspond; rationally viewing market fluctuations, and upholding value-investment and long-term investment.
- Guiding investors in rational and lawful protection of rights.
- Encouraging banks to always protect the rights and interests of clients.
- Encouraging the banking sector to strictly abide by appropriate regulatory standards for sales, and refraining from misleading investors, making blind recommendations, or undertaking to provide protections on principal and returns.
- Encouraging the banking sector to strengthen comprehensive information disclosures. Raising the transparency of the wealth management market, and protecting the rights to information of investors.