2015 Trends for China Financial Services Industry
Financial institutions in China will no doubt face more challenges in 2015 and yet they will have more opportunities to grow. The Financial Service team of Deloitte China has always been dedicated to study development and changes of this industry, and 2015 Trends for China Financial Services Industry was written based on our views for the likely trends in 2015.
China financial service industry will face more challenges in 2015.
Narrower interest margin due to interest rate liberalization, higher level of provisioning due to declining asset quality, together with slowdown of profit growth will no doubt be the key challenges for banks across the whole industry. Capital adequacy, competition on internet banking and innovation are affecting different banks differently.
Continuation of the bull market into 2015 is a common view. Rolling out of the registration-based system for IPO and the development of the asset management business are all considered favorable factors for the industry.
Comparing with the banking and securities industry, there may not be a common view on the insurance industry. Reform of the product premium setting is favorable to some players but not to others. In fact, the market is cautious about the potential impact of any cut-throat competition that might arise. Alternative investment gives more space to the insurers but risk management and talent pool remain challenges to the industry.
Asset Management Industry
As the idea of cross-industry asset management business is accepted by the financial service industry, together with the open up of the securitization market, a healthy growth of the industry in 2015 is expected.
To all industry players, we see that the key issues for them in 2015 are Competition and Regulations.