Industrial and Commercial Bank of China (ICBC), the country’s largest bank by assets, has obtained the approval of China Banking and Insurance Regulatory Commission (CBIRC) to launch a wealth management subsidiary.
Recently, several banks in the country received the green light from the CBIRC to establish wealth management units.
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They include Bank of Communications, Agricultural Bank of China, Construction Bank of China and Bank of China.
The watchdog also said that it received applications from other commercial banks but did not reveal details.
China’s asset management industry saw a major shakeup at the end of 2018 after the wealth management units of the country’s commercial banks received the approval to invest directly in Chinese shares.
The move was aimed at improving banks’ risk management capabilities.
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By GlobalDataEarlier, banks had to rely on a mutual fund partner to sell wealth management offerings.
Last November, Bank of China became the first of the ‘big four’ state-owned banks in the country to announce the creation of a wealth management subsidiary.
Meanwhile, at the end of last year, UBS received approval to increase its stake from 24.99% to 51% in its securities joint venture in China.
The move makes UBS the first foreign bank to purchase a controlling stake in a China business.
