The board of China Everbright Bank has approved the splitting off of wealth-management business into a separate unit.
The approval will allow the bank to put its wealth business into a wholly owned independent unit.
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The move, that awaits regulatory approval, comes after Everbright Bank reported a 12% rise in its operating profit.
The bank’s decision may lead the way for several Chinese lenders to split off assets with an eye to eventually listing them, Bloomberg quoted China International Capital Corporation (CICC) as saying.
CICC said that some Chinese lenders might start to spin off businesses by the second quarter of 2015 with their medium-term goal emphasizing to list those businesses in initial public offerings to boost valuations as part of lenders’ ownership reforms.
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