China banks go open architecture

Shanghai-based Z-Ben Advisors, in a new report on fund distribution in China, argues that over the past few years, open architecture has become the norm among the major distributor banks.Funds distribution in China tends to face bottlenecks, because a handful of banks have the national network that can turn a fund launch into a success. When banks began selling funds, they tended to do so in order to boost the funds under custody, because custody fees were high. Sales commissions on i…