Bank of Chongqing Co. Ltd. intends to invest up to 1 billion yuan to set up a wealth management subsidiary.
The Chinese bank will hold no less than 51% of the proposed subsidiary. It will subsequently introduce strategic investors to the subsidiary, which will be tentatively called Yuyin Wealth Management Co. Ltd.
The bank said the move would help it meet new regulatory requirements and achieve risk segregation of the wealth management business, among others. The proposal is subject to the fulfillment of procedures such as approval of, registration and filing with relevant government authorities.
Bank of Chongqing is the latest Chinese bank to announce plans for setting up a wealth management unit. Postal Savings Bank of China Co. Ltd., Bank of Qingdao Co. Ltd., Industrial & Commercial Bank of China Ltd. and Agricultural Bank of China Ltd. have already disclosed plans to establish their own wealth management units.
As of Dec. 13, US$1 was equivalent to 6.88 Chinese yuan.