BOCOM Joins Rivals in Having USD1.2 Billion Wealth Unit Approved
Zhang Yushuo
DATE:  May 30 2019
/ SOURCE:  yicai
BOCOM Joins Rivals in Having USD1.2 Billion Wealth Unit Approved BOCOM Joins Rivals in Having USD1.2 Billion Wealth Unit Approved

(Yicai Global) May 30 -- Chinese regulators have approved Bank of Communications' application to open a wholly owned wealth management subsidiary, following similar moves by Industrial and Commercial Bank of China and China Construction Bank.

Based in Shanghai with a registered capital of CNY8 billion (USD1.2 billion), the unit will specialize in publicly and privately offered wealth management products and related businesses like wealth management consulting, BOCOM said in a statement.

The China Banking and Insurance Regulatory Commission also recently approved applications from ICBC and CBC to set up such units with registered capital of CNY16 billion and CNY15 billion, respectively. They were the first wealth management units formed by commercial banks.

BOCOM's asset management center and its new subsidiary will co-exist, though some functions will be transferred to the new unit in the future, the lender's vice president said when its earnings report for last year was published in March. 

Wealth management units will enrich institutional investors and increase the supply of financial products that meet market demand, the CBIRC said, adding that they will provide more funds to the real economy and financial market.

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Keywords:   Bank of Communications