China ** News Chenxi has once again received the good news that the wealth management subsidiaries of listed banks have been approved for preparation, and this time the protagonist is Zheshang Bank. On the afternoon of January 1, Zheshang Bank issued the "Announcement on the Approval of the Establishment of Zheyin Wealth Management Co., Ltd." Zheshang Bank said that according to the approval of the State Administration of Financial Supervision and Administration, it was approved to establish Zheyin Wealth Management Co., Ltd. After the completion of the preparatory work, an application for opening will be submitted to the State Financial Supervision and Administration in accordance with the relevant regulations and procedures. 
Zheshang Bank's application for the establishment of a wealth management subsidiary has been going on for a long time. As early as November 2020, Zheshang Bank announced that it planned to invest RMB 2 billion to wholly establish Zheshang Wealth Management, which has been more than three years. It is reported that as of the end of June 2023, the balance of wealth management products of Zheshang Bank is 17643.7 billion yuan;Among them, the balance of net-worth wealth management products is 15209 billion yuan, accounting for 86 percent of wealth management20%。Zhejiang Bank Wealth Management was approved for establishmentMake up for the shortcomings of the licenseOn the afternoon of January 1, Zheshang Bank announced that it received the "Reply of the State Administration of Financial Supervision and Administration on the Preparation for the Establishment of Zheyin Wealth Management Co., Ltd." (Jin Fu 2023 No. 506) on December 29, 2023. According to the reply, Zheshang Bank was approved to establish Zheyin Wealth Management Co., Ltd. Zheshang Bank said that after the completion of the preparatory work, it will submit an application to the State Administration of Financial Supervision and Administration for opening in accordance with relevant regulations and procedures. That is, after Zheyin Financial Leasing, Zheshang Bank will have a second financial subsidiary. It is understood that in recent years, Zheshang Bank has continued to promote the transformation of wealth management business to net worth. As of the end of June 2023, the balance of the bank's wealth management products was 1,7643.7 billion yuan, of which the funds of individual and institutional customers accounted for 9145% and 855%；The balance of net-worth wealth management products is 15209 billion yuan, accounting for 86 percent of wealth management20%。The relevant person in charge of Zheshang Bank said that the approval of the establishment of Zheshang Bank Wealth Management is a new starting point to promote the return of wealth management business to its origins, strengthen risk isolation, and guide social funds to irrigate the real economy. In addition, the establishment of wealth management subsidiaries and the completion of license shortcomings are conducive to better integrating business resources, enriching the wealth management product system, and better meeting the diversified financial needs of customers. In the future, Zhejiang Bank Wealth Management will adhere to customer-centricity, continue to improve investment and research capabilities, improve product system and customer companion system, strengthen comprehensive risk management capabilities, continuously improve customer service levels and service capabilities to the real economy, and comprehensively embark on a new journey of high-quality development of asset management business. Three years ago, the official announcement of the investment was establishedThe registered capital is 2 billion yuanAs early as March 2019, senior executives of Zheshang Bank revealed the bank's plan to lay out wealth management subsidiaries at the results conference, and emphasized that the bank is adjusting and optimizing the asset management business structure, and the results of the above adjustments are gradually emerging. According to the 2019 annual report, the interbank wealth management funds of Zheshang Bank have been gradually reduced and cleared. In November 2020, Zheshang Bank officially announced the establishment of Zheyin Wealth Management: the registered capital of Zheyin Wealth Management is planned to be RMB 2 billion, and the registered place is Hangzhou;Zheshang Bank holds 100% of the shares, and the investment funds** are Zheshang Bank's own funds. According to the announcement, the business scope of Zheyin Wealth Management includes: public issuance of wealth management products to the unspecified public, investment and management of entrusted investors' property;Non-public issuance of wealth management products to qualified investors, investment and management of entrusted investors' property;Financial advisors and advisory services. Regarding the application for the establishment of Zheyin Wealth Management, Zheshang Bank said that it is an important measure for the bank to implement the latest regulatory requirements and promote the sustainable and healthy development of wealth management business. Through the establishment of wealth management subsidiaries, the standardization of wealth management business and the strengthening of risk isolation of wealth management business are conducive to improving the level of comprehensive financial services of Zheshang Bank, and enhancing the ability to serve the real economy, create value and resist risks as a whole. After the approval of the establishment of Zheyin Wealth Management, the wealth management subsidiaries of the 12 national joint-stock commercial banks in China will all be "complete". According to the data, 31 wealth management subsidiaries of banks have been approved for operation in the whole market. Among them, there are 5 Sino-foreign joint ventures and foreign-controlled wealth management subsidiaries and 26 wholly-owned wealth management subsidiaries of the Chinese side. In terms of the pace of opening, 11 wealth management subsidiaries opened in 2019;Nine wealth management subsidiaries opened in 2020, two in 2021, eight in 2022 and one in 2023. The team of China Securities Construction Investment Bank pointed out that after the establishment of wealth management subsidiaries in 2019, wealth management subsidiaries have determined a clear development strategy and development path. In 2024, the scale of bank wealth management is expected to achieve a 10% growth, and the balance of wealth management is expected to reach 31-32 trillion yuan. 2024 is the year of optimization of the financial asset allocation structure, the "28 law" in asset allocation will continue to hold, and the structure of 80% of safety cushion assets and 20% of Bo income assets will not change, but it is expected that the proportion of bonds, public offerings, and equity assets will rebound. In 2024, wealth management subsidiaries will also begin to transform into professional asset management companies, begin to improve customer risk appetite, accelerate the transformation of product structure, improve equity investment and research capabilities, and expand direct sales channels.
Editor: Captain Review: Chen Mo.