The wealth management subsidiaries of six Chinese banks have obtained approval to commence operation since the start of 2022, as part of ongoing reform of China’s asset management sector.
On 3 August Hengfeng Bank Share Co., Ltd. announced that its fully invested subsidiary Hengfeng Wealth Management Co., Ltd. (恒丰理财有限责任公司) had obtained approval from the China Banking and Insurance Regulatory Commission (CBIRC) to commence operation.
The company has 2 billion yuan in registered capital and is headquartered in the Shandong province city of Qingdao.
Hengfeng Wealth Management is the sixth bank wealth management subsidiary to obtain approval from CBIRC to commence operation since the start of 2021. Other banks to grab approval for the operation of their wealth management subsidiaries this year include Shanghai Pudong Development Bank, Bank of Shanghai, China Minsheng Bank, and a tie-up between Goldman Sachs and ICBC.
China is currently host to 29 bank wealth management subsidiaries, including all six of the big state-owned banks, 11 joint-stock banks, 7 municipal commercial banks, 1 rural commercial bank and 4 joint-venture banks.
With the exception of Bohai Wealth Management, all of the bank wealth management subsidiaries have obtained approval from CBIRC to commence operation.