Jane Chen / Shanghai Daily news

Banks may have to raise the thresholds for their individual investment programs, according to the pending two new regulations governing individual investment business.
China Banking Regulatory Commission invited public opinions for drafts of the two regulations yesterday, the Shanghai Morning Post said.  Individuals or institutions can hand in their views before June 25 via letter, email or fax.
As the two drafts rule, the base investment unit will be set at a minimum of 50,000 yuan (US$8,046) or US$5,000 for investment programs promising fixed yields, and higher at 80,000 yuan / US$5,000 for products offering flexible yields.
These standards are higher than most current thresholds, market analysts pointed out.
Only the four state-owned banks are having the base units at 50,000 yuan, while most other smaller banks are setting the bases as low as 10,000 yuan to attract investors.
Analysts worried if the new standards are finally adopted, they will turn out a blow to small banks and force out small individual clients.
To rectify the individual investment business, the banking authority writes stricter rules on yield promises in the two regulations, the Shanghai Morning Post report added.
It rules that the promised fixed yields of investment programs must be lower than the banking interest rates of the corresponding periods.  If the promises are higher than the banking rates, they must be provided on affixed conditions.
The conditions can be that the bank has the right to adjust the period of the program or to change the currency in which the yield is paid.  Clients must shoulder the risks from the affixed conditions.
Banks can share the yields above the promised fixed rates with the clients according to their contracts, but they cannot promise any yields other than the promised rates.
Banks illegally selling individual investment products will be fined with penalties up to 1 million yuan.  In severe cases, they will be scrapped the license to sell investment programs.