China’s Bank of Communications and Agricultural Bank of China have secured the go-ahead from the China Banking and Insurance Regulatory Commission to set up wealth management subsidiaries.
Last month, Construction Bank of China and Bank of China also obtained the regulatory approval to launch wealth management subsidiaries.
Bank of China was the first of the ‘big four’ state-owned banks to announce the creation of a wealth management subsidiary in November last year. The proposition will be offered through the bank’s wholly-owned subsidiary Bank of China Wealth Management.
The launch of the wealth subsidiaries is expected to expand financing channels as well as enhance the mix of institutional investors.
The latest move comes shortly after the banking and insurance watchdog allowed China wealth management subsidiaries of domestic commercial banks to invest directly in Chinese shares.
Meanwhile last month, UBS announced plans to increase its stake in its securities joint venture in China from 24.99% to 51%. With the move, UBS becomes the first foreign bank to own a controlling stake in a China business.