Postal Savings Bank of China inaugurated a new arm to manage wealth management products (WMPs), the last of China’s top six state-owned lenders to set up a designated wealth management unit under a national regulatory structure, reported Caixin.
PSBC Wealth Management Co., a wholly owned subsidiary of the Postal Savings Bank, opened for business Thursday in Beijing. The company also unveiled the first batch of products to tap the country’s RMB 22 trillion ($3.1 trillion) bank wealth management market.
Chinese commercial banks have raced to establish designated wealth management units as doing so allows them to operate with fewer restrictions on investments using wealth management funds under rules released late last year governing banks’ asset management businesses.
Joint-stock banks and smaller city commercial banks are also creating similar new business units. China Merchants Bank, Everbright Bank, Industrial Bank, Bank of Hangzhou and Bank of Ningbo are among the smaller rivals that won approval for wealth management operations this year. As of late September, the China Banking and Insurance Regulatory Commission (CBIRC) approved 12 banks to set up WMP units.