Chinese authorities have just given their approval for several banks to kick start their wealth management subsidiaries.
Ping An Bank announced on 19 August that it had obtained approval from the China Banking and Insurance Regulatory Commission (CBIRC) for its wealth management subsidiary Ping An Wealth Management (平安理财有限责任公司) to commence operation.
On the same date Bank of Nanjing and Bank of Jiangsu also announced that they had obtained similar approvals from CBIRC.
The wealth management subsidiaries of Bank of Nanjing and Bank of Jiangsu each have registered capital of 2 billion yuan, while Ping An Wealth Management received 5 billion yuan in capital from Ping An Bank for its founding.
The latest approvals arrive just after CBIRC gave its approval in early August for Shanghai Pudong Development Bank to establish its own wealth management subsidiary.
At present all six of the big state-owned banks and over ten commercial banks have seen their wealth management subsidiaries commence operation, including China Merchants Bank, China Everbright Bank, Industrial Bank Co., and Bank of Ningbo.