Is ICBC financing the same as ICBC?

Wealth management products purchased in banks are usually divided into two types, one is self-operated wealth management products and the other is products sold by banks on a commission basis. For example, many products sold by ICBC are ICBC wealth management products. However, it seems that this ICBC wealth management and ICBC have this unusual relationship. Are they the same?

Is ICBC financing the same as ICBC?

ICBC Wealth Management Co., Ltd. is controlled by China Industrial and Commercial Bank of China Limited 100%, so ICBC Wealth Management is a subsidiary of ICBC. We can regard them as a family, but legally speaking, they exist and operate separately.

Different from ICBC's banking nature, ICBC Wealth Management is mainly engaged in asset management-related businesses such as issuing corporate wealth management products, issuing private wealth management products, wealth management consultants and consulting.

As for why we should set up a subsidiary separately, this is because banks mainly focus on savings, and savings are risk-free and will not lose the principal. Therefore, in the past, everyone always regarded the bank's wealth management products as risk-free or risk-free products.

However, the wealth management products sold by banks are not foolproof, especially after the new 20 19 asset management regulations, which broke the rigid redemption, that is, the wealth management products that are not allowed to protect the capital.

So now, the financial management functions of banks are separated, and ICBC Financial Management Co., Ltd. has been formed.

On the whole, wealth management products, whether self-operated products or consignment products, are formal and reliable. However, there is no loss risk in capital-guaranteed wealth management products at present, but banks will classify the risk level according to the product situation. The lower the risk level, the more stable the income and the smaller the risk of loss.