China’s Core Wealth Tech Giants 2026

China’s Core Wealth Tech Giants 2026 | Generated by AI

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Question: Give more details on financial systems used by banks in China for mutual funds, trading, and similar functions, comparable to Avaloq in global banks.

Answer:

Here are additional details on the financial systems used by Chinese banks for wealth management, mutual funds distribution, investment products, trading support, and related functions (as of early 2026). These build on the earlier overview, focusing on updated market dynamics, more vendor examples, specific capabilities for wealth/investment/trading, and contrasts to Avaloq.

Avaloq is a specialized wealth management and private banking platform with strong integrated core banking, portfolio management, fund distribution, advisory tools, trading execution, compliance, and client onboarding features. In China, domestic vendors dominate due to regulatory requirements (e.g., data localization, tech self-reliance), massive scale, and integration with local ecosystems like Ant Group, Tencent, exchanges (SSE/SZSE), and wealth platforms.

Leading Domestic Vendors (Updated 2025-2026 Landscape)

Sunline remains the standout modern equivalent for integrated wealth and investment functions in many Chinese banks:

Sunline (Shenzhen Sunline Tech)
- Market leader in next-generation core banking modernization.
- In 2025, three major banks (managing > CNY 5 trillion in assets combined) went live on Sunline’s cloud-native core platform.
- High adoption among joint-stock and city commercial banks (e.g., Ping An Bank, Bank of Nanjing, WeBank, Bank of Dongguan, and recent expansions to major joint-stock banks and Shanghai Bank with 7x performance improvements).
- Capabilities relevant to mutual funds/trading/wealth: Supports retail/commercial banking with wealth management modules, investment product distribution, digital channels for fund subscriptions/redemptions, portfolio tools, and integration with trading/exchange systems. Cloud-native + AI-driven features (e.g., AI-powered requirement analysis with Huawei/DeepSeek in 2025) enable personalized advisory, risk management, and scalable handling of wealth products.
- Strong for digital transformation, similar to Avaloq’s focus on wealth-centric banking but tailored to China’s high-volume retail wealth market.
Yusys Technologies
- Provides full core banking suites with strong wealth management and investment modules.
- Deep ties to major banks (e.g., long-term partner of China Construction Bank for various systems; supports joint-stock, urban, and rural commercial banks).
- Capabilities: Next-generation core with mobile super apps, corporate/online banking, credit/investment integration, and support for wealth products. Often partners with Huawei for distributed cores (e.g., Hangzhou Bank). Strong in lending/credit but extends to wealth advisory and product distribution.
DCITS (Digital China / Shenzhou Info)
- Veteran vendor with 30+ years in core banking.
- Used by large institutions (market share leader in some IDC reports for banking IT).
- Capabilities: Comprehensive core with wealth management support; recent partnerships like MUFG Bank (China) for next-gen core (2024 onward). Includes modules for investment products and integration with securities/trading platforms.

Other notable vendors for wealth/investment/trading support:

Hundsun Technologies — Strong in securities, asset management, and fund systems; widely used for mutual fund back-office, trading platforms, and wealth tech.
Neusoft, iSoftStone, Yonyou — Provide specialized wealth management, asset management, and fintech solutions integrated with cores.
Tencent Cloud Financial Services / Huawei Cloud — Often partner with above vendors for cloud-based wealth/digital banking (e.g., Sunline-Huawei distributed cores).

Mutual Funds and Wealth Management Specifics

Chinese banks distribute mutual funds, structured wealth management products (WMPs), private funds, and insurance-linked investments via in-app platforms, branches, or subsidiaries.
Many use vendor cores (e.g., Sunline) for backend processing, NAV calculations, subscriptions/redemptions, and compliance.
Front-end often integrates with third-party platforms: Ant Fortune (Alipay-linked, dominant for retail funds), Tencent Wealth (WeChat Pay-linked), or bank apps.
For private/wealth management: Banks like China Merchants Bank, ICBC, or Ping An use customized modules or in-house + vendor solutions for high-net-worth advisory, portfolio management, and cross-border products (via QDII/QFII). Foreign-invested banks (e.g., HSBC China) may use global platforms localized.

Trading and Securities Support

Commercial banks do not directly broker equities (restricted to securities firms like CITIC Securities, Haitong).
Banks support bond trading (via CFETS interbank), fund trading, forex, and structured products.
Integration via domestic middleware or vendor APIs to SSE/SZSE, Bond Connect, Stock Connect.
Vendors like Sunline/Hundsun provide treasury/foreign exchange modules and trading interfaces.

International Platforms in China

Avaloq itself is used by some (e.g., China CITIC Bank International, Haitong International for private wealth in Hong Kong; Agricultural Bank of China Hong Kong branch historically).
Mostly limited to offshore/Hong Kong entities or foreign banks in China. Mainland onshore operations favor domestic vendors.

Overall, Sunline is the closest functional parallel to Avaloq for modern, wealth-integrated banking in China—emphasizing scalability, digital wealth tools, and AI enhancements—while the ecosystem remains highly localized and dominated by vendors like Sunline, Yusys, and DCITS.

References:

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