① Insiders from China CITIC Bank Corporation stated that the main reason for this adjustment is to better protect investors' rights. Additionally, the bank reviews the compliance of related product ratings every year according to the sales suitability management measures. ② China Construction Bank and Minsheng Bank have also implemented similar actions this year. However, compared to the number of products adjusted, currently, the 158 products from China CITIC Bank Corporation should be the most.
On May 12, the Financial Associated Press reported (Reporter Peng Kefeng) that another large commercial bank has adjusted the risk ratings of mutual funds they distribute.
Recently, China CITIC Bank Corporation announced that, starting from May 12, it will raise the risk ratings of 158 asset management products it distributes, setting a new industry record for the number of adjustments in a single batch. A source within China CITIC Bank Corporation responded to reporters from the Financial Associated Press this morning, stating that the main reason is to "better protect investors' rights." In addition, reporters noted that since the beginning of this year, China Construction Bank Corporation, MINSHENG BANK, and other banks have taken similar actions.
In response, an Analyst from a brokerage told reporters from the Financial Associated Press that since last year, major banks have been raising the risk ratings of asset management products they distribute, especially those related to equity investments, mainly to respond to the regulatory body's call for "sellers to be responsible and buyers to bear their own risks," helping to enhance investors' risk awareness. From this perspective, more city commercial banks, rural commercial banks, and other small and medium-sized banks will likely follow suit in the future.
An insider from a bank listed in Jiangsu, Zhejiang, and Shanghai also informed reporters from the Financial Associated Press that the bank highly values the protection of investors' rights. Furthermore, from the perspective of managing publicly offered fund products that are distributed, when the bank adjusts the product risk ratings, it often refers to the latest ratings of similar products from state-owned banks and joint-stock banks.
China CITIC Bank Corporation raised the risk ratings for 158 types of sold Funds, including popular QDII products.
Recently, China CITIC Bank Corporation published an announcement on its official website regarding the adjustment of risk ratings for some sold Asset Management products.
In the announcement, China CITIC Bank Corporation stated that, in accordance with regulatory requirements, to effectively manage the suitability arrangements for investors, fulfill suitability obligations, and protect investors' rights, China CITIC Bank Corporation will adjust the risk ratings of certain asset management products they distribute starting from May 12, 2025, following the principles of consistency in risk ratings for similar products and adjustments based on market and policy dynamics.
China CITIC Bank Corporation also stated that this adjustment only involves changes to the risk ratings of the products, and does not change the investor types, investment scope, investment strategies, or other risk-return characteristics of the products previously purchased by investors. The risk ratings and other product elements of purchased products will remain based on the product descriptions at the time of purchase. For products involving RSP, if the adjusted product risk rating exceeds the client's risk tolerance assessment results, it will result in a deduction failure. If there are three consecutive deduction failures, the RSP agreement will automatically become invalid. Clients can choose to re-assess their risk tolerance or select products that match their own risk tolerance for investment.
According to reporters from Caixin, the number of asset management products that need to adjust their risk ratings announced by China CITIC Bank Corporation amounts to 158, all of which have seen an increase in their risk ratings. Among these, several Fund products' risk ratings have risen from PR3 (which indicates a balanced type corresponding to medium risk) to PR4 (which indicates an aggressive type corresponding to higher risk); in addition, there are products (such as Great Wall Jiuheng Mixed A, product code 201001) whose risk ratings were raised two levels from PR2 (corresponding to lower risk) to PR4.
Furthermore, among the aforementioned 158 products, there are also popular Overseas investment products—Morgan Fund Management (China) Co., Ltd. has two public Fund products, Morgan Overseas Steady Allocation RMB A and Morgan Overseas Steady Allocation RMB C, whose risk ratings have been raised from PR3 to PR4.
Today, an insider from China CITIC Bank Corporation introduced to Caixin reporters that the main reason for this adjustment is to better protect investors' rights. In addition, the bank reviews the compliance of related product ratings every year according to the sales suitability management measures.
At the beginning of the year, China Construction Bank Corporation and MINSHENG BANK also took similar actions.
The Financial Associated Press has discovered that China CITIC Bank Corporation is not the first bank this year to publicly raise the risk ratings of publicly offered Fund products. Earlier, China Construction Bank Corporation and MINSHENG BANK also took similar actions. However, in comparison to the number of adjusted products, currently, the 158 products from China CITIC Bank Corporation seem to be the highest.
On January 7, MINSHENG BANK announced on its official website that it decided to adjust the risk ratings of some bank-distributed public Fund products starting from January 10, 2025. Reporters from Caixin found that the distributed public Fund product adjusted by MINSHENG BANK this time is the security investment fund with code '217018', the招商安瑞进取债券型 securities investment fund, and the adjusted risk level is 'medium risk'.
On February 10, China Construction Bank Corporation published on its official website that it has recently adjusted the risk ratings of 21 public Fund products, including 'Efund Leading Selection Two-Year Holding Period Mixed Securities Investment Fund Class C' and 'Huatai-Pb Digital Economy Leading Development Three-Year Holding Period Mixed Securities Investment Fund Class A'. After the adjustment, there may be a mismatch between the client's risk tolerance assessment level and the product risk level, and clients are advised to pay attention in a timely manner.
It is worth noting that both Banks mentioned above have raised the risk ratings of their distributed Asset Management products at least once within 2024.
