The bank also launched wealth management offerings that include pension-themed products, fixed income and strategy-based products.
Postal Savings Bank of China (PSBC) has commenced operations of its fully owned wealth management subsidiary in Bejing, unveiling a range of products it hopes will give it a foothold in the country's burgeoning wealth management market the bank announced in a statement last week.
The establishment of PSBC Wealth Management will «help the bank to enhance its support for the real economy and implement the inclusive finance to better meet the growing diversified financial needs of the entire society,» the statement said.
«Digitization has brought a whole new experience to customers and changed their habits ...The banks should provide customers with full life cycle asset management services through the supply of diversified financial service,» Liu Aili, chairman of China Post Group said to «China Daily» about the new unit.
Banks Fight for Piece of Pie
China's wealth management market is estimated to be worth some 22 trillion yuan ($3.1 trillion, linked text in Mandarin).
PSBC is the last of China's top six state-owned banks to open a wealth management subsidiary, following new rules introduced by the China Banking and Insurance Regulatory Commission (CBIRC), which took effect in December 2018. They allow the asset management subsidiaries of commercial banks to raise public stock funds, as well as invest up to 35 percent of their assets under management in non-standard credit assets.
China Construction Bank (CCB), the Industrial and Commercial Bank of China (ICBC) were the first to open up wealth management units in July, followed by Bank of China, Bank of Communications and Agricultural Bank of China. Joint stock commercial banks, including China Everbright Bank and China Merchants Bank, have also opened WM units.
