Two more leading joint-stock commercial banks have secured official approval to open financial asset investment companies (AICs), expanding the roster of lenders authorized to conduct debt-for-equity swaps and direct equity investments to nine, reports Caixin. China CITIC Bank Corp. Ltd. said it has received a green light Friday from the National Financial Regulatory Administration to set up CITIC Financial Asset Investment Co. Ltd. The new entity will have a registered capital of RMB 10 billion ($1.4 billion) and be based in Guangzhou.
China Merchants Bank Co. Ltd. (CMB) also secured regulatory approval to establish its own investment arm in Shenzhen. The new subsidiary, CMB Financial Asset Investment Co. Ltd., is registered with RMB 15 billion in capital—the most highly capitalized AIC at its inception.
The expansion of AICs, which are bank-affiliated investment firms, reflects a push by policymakers to channel more capital into strategic sectors like technology and advanced manufacturing. Originally created to help companies deleverage through debt-for-equity swaps, AICs are increasingly being repurposed to make direct equity investments, marking a significant policy shift to support the real economy.