Bank of Shanghai has become the latest lender to obtain approval for the establishment of its own wealth management subsidiary, as well as the first municipal commercial bank to do so since the start of 2021.
The China Banking and Insurance Regulatory Commission (CBIRC) announced on 30 July that it had approved Bank of Shanghai’s application to commence preparations to establish Bank of Shanghai Wealth Management Co., Ltd. (上银理财有限责任公司).
CBIRC said that preparations for the establishment of Bank of Shanghai Wealth Management should be completed within six months of the date of approval.
Since the start of 2021 three Chinese banks have grabbed approval to prepare the establishment of wealth management subsidiaries, including Bohai Bank, Hengfeng Bank and Bank of Shanghai.
As of the end of 2020 Bank of Shanghai’s outstanding wealth management products totalled 382.22 billion, for an increase of 77.395 billion yuan, or 25.39%, compared to the end of 2019, according to the lender’s 2020 report.