Big six state-owned lender Agricultural Bank of China (ABC) has become the latest member of the Chinese banking sector to obtain approval for its wealth management subsidiary to commence operations.
ABC announced on 25 July that the China Banking and Insurance Regulatory Commission (CBIRC) had given the greenlight for its fully invested wealth management subsidiary to commence operation.
Under CBIRC’s approval arrangements Chinese banks must first obtain approval for the establishment of a wealth management subsidiary, before obtaining approval for the subsidiary to commence operation.
ABC Wealth Management Co., Ltd. (农银理财有限责任公司) has registered capital of 12 billion yuan, its registered address is in Beijing, and its main business will include the issuance of publicly offered wealth management products and privately offered wealth management products, as well as wealth management advisory and consulting and other asset management-related operations.
ABC Wealth Management is expected to officially commence operations at the start of August.
ABC is the fifth big state-owned bank in China to obtain approval for its wealth management subsidiary to commence operation, after Bank of China, Bank of Communications, China Construction Bank and ICBC received greenlights from CBIRC.