Core Viewpoint - Several banks, including Citic Bank, are adjusting the risk ratings of their fund distribution products in response to market changes, with a notable trend of upward adjustments in risk ratings across the industry [1][8][9]. Summary by Sections Risk Rating Adjustments - Citic Bank announced it will adjust the risk ratings of 17 asset management products starting from October 15, 2025, with 15 products being upgraded and 2 downgraded [1][3][7]. - This marks the fourth adjustment by Citic Bank in 2023, following similar adjustments by other banks such as Agricultural Bank, Construction Bank, and Minsheng Bank, with most ratings being increased [1][9]. Specific Product Changes - Among the 17 products, two mixed-asset funds managed by E Fund were downgraded from PR3 to PR2, while two mixed funds from Huatai-PB were upgraded to PR5, the highest risk level in this adjustment [6][7]. - The adjustments include various funds from institutions like Huatai-PB, E Fund, and others, reflecting a comprehensive review of risk levels [3][4]. Regulatory Compliance - The adjustments are in line with regulatory requirements aimed at enhancing investor protection and ensuring appropriate management of investment suitability [1][12]. - The adjustments follow the guidelines set by the National Financial Regulatory Administration, which emphasizes independent and prudent risk rating assessments by commercial banks [12][13]. Impact on Investors - The changes in risk ratings do not alter the investment characteristics of previously purchased products, and investors are advised to reassess their risk tolerance in light of these adjustments [7][12]. - For products with adjusted ratings exceeding an investor's risk tolerance, automatic deductions for investment plans may fail, potentially leading to the termination of such plans [7][12].

Group 1 - The core viewpoint of the articles is that Minsheng Bank is terminating its cooperation with third-party platforms for public fund distribution in response to new regulatory requirements, shifting its focus to self-owned channels [1][5][11] - Minsheng Bank announced the termination of its cooperation with the "Huawei Wallet" platform for public fund distribution effective September 4, 2025, requiring investors to use the Minsheng Bank APP for all related transactions [2][3] - The bank had previously announced the termination of its partnership with the "Yutong Life" platform for public money market fund distribution effective August 25, 2025, indicating a broader strategy to consolidate its fund distribution channels [3][4] Group 2 - The new regulatory framework, known as the "Sales Agency Regulations," was issued by the National Financial Supervision Administration in March 2025, mandating that commercial banks can only sell products through their own channels and prohibiting outsourcing of sales processes [5][11] - Minsheng Bank's adjustments are a direct response to these regulations, which aim to clarify the boundaries for asset management institutions and banks, eliminating the practice of using third-party platforms for sales [5][12] - The bank is also integrating its direct banking services, with the "Huixuanbao" channel being merged into the Minsheng mobile banking and personal online banking platforms, reflecting a trend towards internal channel optimization [6][9] Group 3 - The bank's revenue from fund distribution has been under pressure due to declining commission rates and regulatory tightening, with a reported decrease in net income from fees and commissions by 5.15% year-on-year in 2024 [12][13] - The overall trend in the banking industry shows a decline in non-interest income, with many banks facing challenges in maintaining profitability in their fund distribution businesses due to reduced fees and increased regulatory scrutiny [12][13] - As of 2024, major banks, including Minsheng Bank, have been implementing fee reduction policies to attract investors, but this has led to a significant drop in income from fund distribution activities [11][12]

Core Viewpoint - The article discusses the rapid development of commercial banks' agency sales business and the introduction of the "Administrative Measures for Agency Sales Business of Commercial Banks" to enhance regulation and protect consumer rights [1][2][12]. Group 1: Regulatory Framework - The new measures will take effect on October 1, 2025, and aim to standardize agency sales practices, reduce misleading sales, and improve customer service [1][2]. - The measures emphasize the responsibilities of banks as agency sales institutions, clarifying that they are not responsible for the investment and repayment of the sold products [2][10]. Group 2: Partner Selection and Management - Banks are required to strictly select partner institutions, limiting them to those supervised by the State Council's financial regulatory authority and holding financial licenses [3][5]. - Regular evaluations of partner institutions are mandated, with a mechanism for exiting partnerships if serious violations or risks are identified [3][5]. Group 3: Product Approval and Due Diligence - The measures require banks to establish clear standards for product approval based on customer profiles and risk tolerance, ensuring thorough due diligence on the products [4][6]. - Banks must verify the authenticity and completeness of product information and cannot rely solely on past performance metrics for approval [4][5]. Group 4: Sales Practices and Customer Suitability - Banks must establish comprehensive monitoring and management mechanisms for the entire sales process, ensuring compliance with appropriate sales practices [6][7]. - The measures highlight the importance of assessing customer suitability, particularly for vulnerable groups, and limit the frequency of assessments to prevent over-evaluation [6][7]. Group 5: Prohibited Practices - The measures outline 11 prohibited practices, including providing guarantees for products and bundling sales against customer wishes [7][8]. - Banks are required to maintain transparency and trust in their relationships with customers, addressing the issue of uniform sales practices [7][12]. Group 6: Private Fund Sales Regulations - The measures set specific entry requirements for agency sales of private fund products, ensuring that banks conduct comprehensive evaluations and obtain senior management approval [9][10]. - The regulations aim to prevent banks from engaging in channel business and ensure that private fund managers meet certain standards [9][10]. Group 7: Market Impact and Future Outlook - The introduction of these measures is expected to promote healthy development in the agency sales market, optimizing income structures and diversifying risks for banks [11][12]. - While some banks may face short-term challenges, the long-term benefits include improved quality and risk control in their operations [12].