(Yicai Global) Jan. 31 -- Three Chinese banks plan to set up their own asset management firms in Shanghai to support the aim of building the city into an international financial hub.
The heads of Shanghai Pudong Development Bank, Bank of Shanghai and Bank of Communications made the announcement at the ongoing city's Lianghui, its two most-important annual political sessions, local media Kankan News reported yesterday.
Industry insiders believe that the convergence of banks' asset management arms in Shanghai will be positive for institutional investors, widen funding channels and satisfy consumers' diversified financial needs. The city also wants the asset management units other financial organizations, including insurers, brokerages and foreign investment institutions, to settle in Shanghai.
BoCom received approval from the China Banking Regulatory Commission at the start of this year to establish a financial management affiliate with an investment of no more than CNY8 billion (USD119.4 million). BoCom officials say the process of opening the unit is being accelerated, the report added.
The registered capital of SPD's planned unit will not exceed CNY10 billion. Bank of Shanghai's board has also approved its plan, with a registered capital of no more than CNY3 billion. Personnel hiring and building design are ongoing, officials said.