CM BANK announced that the sales commission rate for funds starts at one-tenth, promoting inclusive finance and expanding into a new battleground for major banks

The large wealth management market has once again received a strong "signal of change".

On July 18th, China Merchants Bank held the China Merchants Bank Wealth Partner Forum in Shanghai, where some senior executives of the bank, 14 wealth management companies, 15 insurance companies, 39 fund companies, 11 private equity companies, and 2 gold companies' top management attended the forum.

During the forum, Wang Liang, the Secretary of the Party Committee and President of China Merchants Bank, personally delivered a speech, elaborating on the bank's many views on the large wealth management market.

Wang Liang disclosed that currently, China Merchants Bank serves over 200 million retail customers, with over 50 million individual wealth customers. The total assets under retail management have exceeded RMB 14 trillion. The bank has deep cooperation with 157 partner institutions on wealth open platforms, and its sales of public funds and wealth management products rank among the top in the industry. The retail sales of wealth management products have exceeded RMB 3.8 trillion.

President Wang Liang also announced at the forum that they will implement a comprehensive one-tenth discount on the purchase fee of retail sales of public funds, actively promoting the healthy development of the wealth and asset management market, benefiting people's livelihoods.

This move is expected to have a profound impact on the banking industry and fund distribution market.

"Reform of Sales Fee Rates" Becomes a Focus Again

Since 2020, China Merchants Bank has successively introduced preferential measures for fund rates. Initially, it was the arrangement of one-tenth rates for index funds and bond funds.

Subsequently, a differentiated fee rate system was implemented for active equity funds, and a one-tenth rate was applied to pension share funds, steadily promoting fund benefits.

This time, China Merchants Bank once again strongly launched a comprehensive one-tenth discount on fund purchase fees, covering all channels online and offline, all types of fund products, and various fee types such as subscription and redemption fees. This is a significant move to advance the "value bank" strategy.

Extensive "Sales List"

The influence of a bank on the wealth market to a certain extent is related to its product sales list.

In recent years, China Merchants Bank has continuously expanded the number of funds it sells, with accumulated sales of public funds exceeding 12,000. Over 90% of these products have zero subscription fees or one-tenth subscription fees, covering various categories such as active equity funds, index funds, bond funds, FOF funds, QDII, and more.

With the introduction of the comprehensive one-tenth discount, China Merchants Bank's fund purchase fees have all entered the "one-tenth" sequence, which is expected to have a lasting impact on the offline sales landscape of banks and distribution markets.

Proposing Five Initiatives

Wang Liang believes that to achieve high-quality development in large wealth management, one must follow the objective laws of modern financial development and also conform to the reality of China's financial development with Chinese characteristics.

To jointly promote high-quality development in large wealth management, Wang Liang proposed five initiatives in his speech:

First, adhere to customer-centricity and continuously create value for customers. China Merchants Bank hopes to work with partners to uphold the concept of "customer-centricity," prioritize customer interests, continuously improve investment returns, demand matching, information disclosure, transaction efficiency, and other aspects, allowing customers to truly experience a sense of security and gain, thereby earning customer trust and laying a solid foundation for development Secondly, adhere to professionalism for victory, continuously enhance professional service capabilities. CM BANK hopes to uphold a spirit of professionalism and focus together with partners, deeply research the market, understand customer needs, strengthen cooperation in investment research, product development, risk management, and technology application fields, continuously improve the precision in asset, targets, strategy, product research and selection, to create value professionally and serve customers professionally.

Thirdly, embrace innovation to drive continuous improvement in service quality and efficiency. CM BANK hopes to work with partners to be customer-oriented, use technology as a means, actively explore "AI + finance" and "human + digitalization", enhance product innovation, management innovation, and model innovation, to achieve more ideal returns for customers and create better service experiences.

Fourthly, prioritize risk and continuously strengthen security safeguards. The radius of risk management determines the radius of development. CM BANK hopes to work with partners to enhance risk identification and pricing capabilities for underlying assets in asset organization; increase safety cushions, transparency, and standardization in product development; adhere to the principle of matching risk and return preferences in product sales, and enhance full-cycle review and management in post-investment management to improve risk foresight and dynamic response capabilities.

Fifthly, promote win-win cooperation and continuously build a large wealth management ecosystem. In the past, from product introduction to customization and management, from channel sales to wealth open platform cooperation, CM BANK has conducted many explorations with partners. In the future, CM BANK hopes to work together with partners to explore residents' and enterprises' wealth management needs, deepen channel sharing, information sharing, operation sharing, and investment research sharing, to grow and strengthen the unique Chinese wealth management industry together