Postal Savings Bank of China (PSBC) has become the last of the six big state-owned lenders to obtain approval for the establishment of its own wealth management subsidiary.
PSBC issued a public announcement via the Hong Kong Stock Exchange on the evening of 29 May that it had received approval from the China Banking and Insurance Regulatory Commission (CBIRC) to prepare for the establishment of Zhongyou Licai Co., Ltd. (中邮理财有限责任公司).
Following the completion of preparatory work, PSBC will apply with CBIRC for the commencement of operations.
PSBC applied for the establishment of a wealth management subsidiary in December of last year, with a proposed capital contribution of 8 billion yuan.
All five of the other big state-owned banks have obtained approval for preparations to establish their own wealth management subsidiaries, including ICBC, with registered capital of 16 billion yuan; Agricultural Bank of China, (12 billion yuan in registered capital); Bank of China (10 billion yuan) China Construction Bank (15 billion yuan), with Bank of Communications (8 billion yuan).
Two other big state-owned banks in China – ICBC and China Construction Bank, had already obtained approval from CBIRC for their wealth management subsidiaries to enter operation.
PSBC only recently joined the ranks of China’s big state-owned banks in the eyes of regulators, and is the one lender in China with the largest number of outlets at nearly 40,000 in total.