King & Wood Mallesons advises Ping An Bank on the establishment of its wealth management subsidiary
On 19 August 2020, the China Banking and Insurance Regulatory Commission (the “CBIRC”) approved the commencement of operation of Ping An Wealth Management Co., Ltd. (“Ping An Wealth Management”), a wholly-owned subsidiary of Ping An Bank. According to the approval, Ping An Wealth Management will have registered capital of RMB 5 billion and be registered in Shenzhen, Guangdong province. It will be mainly engaged in services related to asset management, including public/private offering of wealth management products, wealth management consultant and advisory services.
Ping An Bank (SZSE stock code: SZ000001) is a nationwide joint-stock commercial bank headquartered in Shenzhen, whose predecessor Shenzhen Development Bank was the first nationwide joint-stock bank going public in the Mainland China. Ping An Wealth Management will be the fifth wealth management subsidiary of the domestic joint-stock banks and also the second one headquartered in Shenzhen.
As the counsel for Ping An Bank, King & Wood Mallesons (“KWM”) was deeply engaged in every aspect of the preparation for the commencement of operation of Ping An Wealth Management. With the extensive experience, KWM takes a lead in advising commercial banks on the establishment of wealth management subsidiaries.
The establishment of Ping An Wealth Management represents another success of KWM in providing a full range of legal services in relation to the establishment of wealth management subsidiaries by Chinese commercial banks after advice for Industrial and Commercial Bank of China, China Everbright Bank and China Merchants Bank in this area. Our services cover wealth management subsidiaries’ business operation, internal policies, and organizational structure, the transfer of the existing wealth management products of the commercial banks to their subsidiaries and related entrusted management arrangements, and communications with the regulators.
After China unveiled the Relevant Measures for Further Opening Up the Financial Sector, commonly known as 11 Measures, on 20 July 2019, KWM advised Amundi, the largest asset management group in Europe, on its co-establishment of the first foreign-controlled wealth management company (the “JVC”) in China with BOC Wealth Management Co., Ltd. As the sole counsel for the JVC preparation group, KWM was fully involved in the preparation stage and commencement of operation of the JVC.
KWM partner Liu Linlin led the project.