China Minsheng Bank has joined the ranks of Chinese commercial lenders to successfully launch operation of its own wealth management subsidiary.
Minsheng Wealth Management Co., Ltd. (民生理财有限责任公司) – a fully invested subsidiary of China Minsheng Bank – has just obtained approval from China’s banking authorities to commence operation, according to an announcement made by the China Minsheng on 16 June.
The approval arrives 18 months after China Minsheng Bank obtained approval to commence preparations for the establishment of a wealth management subsidiary from the China Banking and Insurance Regulatory Commission (CBIRC) in December 2020.
Minsheng Wealth Management has registered capital of 5 billion yuan and is headquartered in Beijing.
As of the end of 2021 China Minsheng Bank’s wealth management product (WMP) balance exceeded the 1 trillion yuan threshold, standing at 1.012833 trillion yuan. This included 982.389 billion yuan in net-value WMP’s, accounting for 96.99% of the total.
China Minsheng Bank is the 9th joint-stock bank to obtain approval from CBIRC for its wealth management subsidiary to commence operation, as well as the fourth in 2022 alone.
A total of 26 Chinese commercial banks in China have obtained approval from CBIRC for their wealth management subsidiaries to open for business.