As China’s wealth management products (WMPs) total 12.8 trillion yuan (2.1 trillion USD) in May 2014, authorities vow to draw up security measures that will safeguard people’s financial assets.

The vice-governor of the People’s Bank of China, Pan Gongsheng, made the assurance to the public at a recent forum in eastern coastal city of Qingdao, noting how the WMPs have boomed in China in recent years, said China Daily.

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Breaking down the growth of the China’s WMPs market in recent years, Pan said that it had decelerated between 30 and 40 percent in 2013 from the recorded rate between 60 and 80 percent in recent years.

Xinhua News noted that the Chinese official emphasized during the forum how the government will ensure the finances of its people, pointing out the need to “preserve and increase” their financial assets.

Looking back at the history of China’s WMPs, Reuters said reported that the “thirst for higher returns of the country’s savers and companies,” its wealth management sector has boomed in recent years. It was only “the opaque nature of the sector that caused concerns about the industry’s health.

Pan clarified, however, that the focus of China’s WMPs market development will remain on primarily on “mobilizing social resources” as it used to be, for purposes of “supporting the growth of the real economy,” added Xinhua.

The top official reiterated that China’s WMP should be regarded not only as a financial issue, but also both as an economic and social issue, pointing out, according to Xinhua, that “it involves the readjustment of the income distribution system and the economic restructuring.”

Still citing the remarks made by Pan, Reuters said in a separate report that the authorities suggested that the regulation of the wealth management products market "should be strengthened to control risk and push forward the healthy development of the sector."

ZeeNews raised the growing concerns faced by China’s financial sector, following the recent economic projections that its growth may be expected to decrease at an estimated 2.4 year low of 7.3 percent in 2014.

TagsChina wealth management development, China Wealth Management Products