Sales of wealth management products by Chinese banks more than doubled last year to an estimated 15.5 trillion yuan ($2.46 trillion),the official Financial News reported on Wednesday.
Chinese banks sold an accumulated 7.05 trillion yuan in wealth products in 2010,the newspaper said.
The average annualised return on wealth management products was 4.14 percent in the first nine months of last year,higher than the one-year bank deposit rate of 3.5 percent,the newspaper said.
The yield of 16 wealth products exceeded 10 percent and that of 3,307 products was higher than 5 percent,it said.
Chinese banks have been trying to attract deposits by rolling out a flurry of high-yielding wealth management products,which are open to market competition.
Meanwhile,real returns on bank deposits are negative,hurting savers faced with annual inflation stubbornly higher than the one-year deposit rate.
Beijing controls China’s interest rate market by setting a ceiling on deposit rates and a floor on lending rates. This protects banks from competition and ensures they have a decent interest rate margin,which is around 300 basis points. ($1 = 6.2940 Chinese yuan)