China greenlights two leading banks to open wealth management units
China's banking and insurance regulator has given two of the country's biggest lenders the go-ahead to set up wealth management subsidiaries.
Agricultural Bank of China and Bank of Communications Friday got the approval from the China Banking and Insurance Regulatory Commission (CBIRC).
Two other big lenders – Construction Bank of China and Bank of China – were given the green light late last December.
China issued rules in early December 2018 for commercial banks' wealth management branches to strengthen their risk management and support the real economy.
China's non-performing loan (NPL) management plays a vital role in preventing systemic risks, supporting transformation of state-owned enterprises (SOEs) as well as state-owned banks, Hu Ying, the assistant to president of China Huarong Asset Management said.
Establishment of wealth management units will enrich the mix of institutional investors, expand financing channels and meet consumers' diversified demands, the CBIRC noted.