07 March 2019

Wealth Management Subsidiaries of Commercial Banks -New Opportunities for Foreign Financial Institution

By: Liu linlinJiang zhihui

The Emergence of Commercial Banks’ Wealth Management Subsidiaries

Investment Paths for Foreign Financial Institutions

To Become a Controlling Shareholder

  • Founding controlling shareholder of a wealth management subsidiary must be a commercial bank incorporated in China.

  • A foreign financial institution can establish a wealth management subsidiary via its locally incorporated bank in China.

  • The locally incorporated bank will generally be required to satisfy the following major thresholds:

Being profitable in the past three consecutive accounting years;

No major incompliance record during the past two years;

Material prudential supervision indicators in compliance with requirements of regulatory authorities;

Having a wealth management business department in operation for more than three consecutive years;

Making capital contribution using its self-owned funds.

To Get a Non-controlling Interest

  • If unable to satisfy the eligibility requirements for controlling shareholder, foreign financial institutions may invest into a wealth management subsidiary as a non-controlling shareholder.

  • Investment Paths

  
  • The investment vehicle will generally be required to satisfy the following major thresholds:

Being profitable in the past two consecutive accounting years;

No major incompliance record during the past two years;

Making capital contribution using its self-owned funds.

Business Scope of Wealth Management Subsidiaries




Your KWM Team

The financial institution team of King & Wood Mallesons Finance & Capital Market Group specializes in financial institutions’ establishment, day-to-day business, investment, merger and acquisition. We are currently representing multiple commercial banks in their application for the establishment of wealth management subsidiaries.

Our strengths:

  • Being familiar with the most up-to-date financial regulations and market practice;

  • Maintaining good communication channels with financial regulatory authorities;

  • Having an in-depth knowledge of the need and culture of foreign financial institutions;

  • Providing Chinese and English bilingual services.

We are willing to provide you the best legal services which are tailored to your needs.



                         








Key contacts

A Guide to Doing Business in China

We explore the key issues being considered by clients looking to unlock investment opportunities in the People’s Republic of China.

Doing Business in China
Share on LinkedIn Share on Facebook Share on Twitter Share on Google+
    You might also be interested in

    The Monetary Authority of Singapore (MAS) recently announced that it will issue up to five new digital bank licenses .

    11 July 2019

    In those heady times a small project team in East Europe with a white paper and a dodgy website could raise millions of dollars in the span of several minutes. The ICO investment phenomenon coupled...

    02 February 2019

    the participants of the transaction worked together to successfully close the Liaoning Port Group acquisition transaction on 3 December 2018.

    16 January 2019

    the China Banking and Insurance Regulatory Commission (“CBIRC”) released the Decision on Amending the Implementation Rules of the Regulations of the PRC on the Administration of Foreign Funded Banks ...

    05 December 2018

    You may also be interested in...

    Legal services for your business

    This site uses cookies to enhance your experience and to help us improve the site. Please see our Privacy Policy for further information. If you continue without changing your settings, we will assume that you are happy to receive these cookies. You can change your cookie settings at any time.

    For more information on which cookies we use then please refer to our Cookie Policy.

    Supported by Cheap Skip Bin Hire Melbourne - Hire Skip Bins Ltd