Huaxia Bank’s [600015:CH] fully-owned wealth management (WM) subsidiary recently received approval from CBIRC to commence operations, as reported by Sina on September 15. The subsidiary is registered at Beijing with a registered capital of RMB3bn. It will specialize in issuing public and private WM products, and providing consulting and asset management services.
At present, a total of 36 banks have established their WM subsidiaries, which include six state-owned banks, ten publicly-listed ones, 17 urban commercial banks, and three rural commercial banks. Following Bank of Qingdao [3866:HK], Huaxia Bank is the second bank to receive such approval in September. By the end of 1H20, Huaxia’s total assets stood at RMB3.27tr, up 8.1% from the end of 2019. During 1H20, total revenue was RMB47.6bn, up 19.6% YoY; net profit attributable to shareholders was RMB9.32bn. Throughout the reporting period, Huaxia issued 1,445 WM products, generating sales of RMB1.03tr and a net profit of RMB1.5bn.