Huishang Commercial Bank (徽商银行) has become the first Chinese bank to grab approval for its wealth management subsidiary to kick off operations since the start of 2020.
Huiyin Wealth Management Co., Ltd. (徽银理财有限责任公司) recently obtained approval to commence operations from regulators after previously securing approval for establishment.
Huiyin has registered capital of 2 billion yuan, and its registered address is in the Anhui province capital of Hefei.
Parent company Huishang Bank had a wealth management product (WMP) balance of 187.826 billion yuan as of the end of 2019, as well as 103.288 billion yuan in net value WMP’s.
As of the end of 2019 Huishang Bank’s total assets are 1.131721 trillion yuan, for an increase compared to 7.73% compared to the end of 2018.
Its net profits were 10.062 billion yuan, for YoY growth of 13.57%.
At present a total of six municipal commercial banks in China have obtained approval to establish WMP subsidiaries, including Bank of Hangzhou, Bank of Ningbo, Huishang Commercial, Bank of Jiangsu and Bank of Qingdao.
Bank of Hangzhou and Bank of Ningbo have already obtained approval for their WMP vehicles to commence operation.