Commercial lender Huaxia Bank has obtained approval from Chinese regulators to establish its own wealth management subsidiary.
On 27 April Huaxia Bank announced that it had obtained approval from the China Banking and Insurance Regulatory Commission (CBIRC) to establish Huaxia Wealth Management Co., Ltd. (华夏理财有限责任公司).
Huaxia bank announced on 20 April 2018 that it planned to establish its own wealth management vehicle as a wholly owned subsidiary with registered capital of up to 5 billion yuan.
The move means a total of 19 banks in China have obtained approval to establish their own wealth management subsidiaries, including all six of the big state-owned banks, six joint stock banks, six municipal commercial banks and one rural bank.
The wealth management vehicles of the big state-owned banks have all commenced operation, as have three of the vehicles of the joint-stock banks, including China Everbright Bank, China Merchant Bank and Industrial Bank Co.
Anhui province’s Huishang Bank recently obtained approval from regulators for its wealth management vehicle to commence operations, becoming the third municipal commercial bank to do so, out of six such lenders that have obtained approval to establish the subsidiaries.