One of China’s big six state-owned banks has opened its own wealth management subsidiary.
On 5 December the Postal Savings Bank of China’s (PSBC) fully owned subsidiary PSBC Wealth Management Co., Ltd. ( 中邮理财有限责任公司) held its opening ceremony in China, as well as released its first batch of wealth management products.
The move means the wealth management subsidiaries of all six of China’s big state-owned banks have now commenced operations.
PSBC Wealth Management has released a total of eight products falling into three different categories, including:
- Strategic indexed products, including the “Domestic Major Asset Category Rotation Index” (境内大类资产轮动指数) and the “Overseas Major Asset Category Allocation Index” (境外大类资产配置指数);
- Fixed income + strategic products;
- “Inflation resistant” and “Pension” products.
China’s banking sector commenced the launch of its own wealth management subsidiaries this year in earnest, following the launch of new asset management rules at the start of 2018 which removed the “implicit guarantees” for WMP’s.
According to a report from Diyi Caijing as of the end of 2018 China’s banking sector wealth management operations totalled 32 trillion yuan, accounting for a 12% share of total banking sector assets.