Baidu fintech spin-off Du Xiaoman Financial (度小满金融) will help commercial lender China Everbright Bank to set up a wealth management subsidiary with the assistance of a veteran of both companies.
Sources from Du Xiaoman said to National Business Daily that vice-president Zhang Xuyang (张旭阳) would be returning to former employer China Everbright Bank to work on the establishment of a wealth management subsidiary.
Du Xiaoman and China Everbright have also executed a strategic agreement for cooperation on the development of fintech applications for the prospective wealth management vehicle.
Zhang Xuyang first joined Baidu in June 2016 as vice-president, responsible for wealth management and asset management operations at Du Xiaoman’s predecessor, Baidu Finance.
Zhang was appointed vice-president of Du Xiaoman Financial following its spin-off from Baidu in April 2018.
Prior to joining Baidu Zhang was appointed general manager of China Everbright Bank’s asset management department, having first joined the commercial lender back in 2004.
China Everbright Bank is one of the first joint-stock lenders in China to obtain approval for the establishment of its own fully invested wealth management subsidiary – Everbright Wealth Management Co., Ltd. (光大理财有限责任公司), whose proposed registered capital is up to 5 billion yuan.
The Shandong province city of Qingdao will serve as the registered location for Everbright’s wealth management subsidiary, according to information from the China Banking and Insurance Regulatory Commission (CBIRC).
Everbright’s 2018 annual report indicates that the lender issued 5.85 trillion yuan in wealth management products last year, for an increase of 1 trillion yuan, or 20.62%, compared to the end of the preceding year.
As of the end of 2018 China Everbright’s wealth management product balance was 1.24 trillion yuan.