On June 21, Capital State learned that today, the China Banking and Insurance Regulatory Commission has publicly approved Hengfeng Bank’s approval for the establishment of a wealth management subsidiary and a capital operation center.
The content of the approval showed that the China Banking and Insurance Regulatory Commission agreed to Hengfeng Bank’s investment of RMB 2 billion to prepare for the establishment of Hengfeng Wealth Management Co., Ltd., and the required funds were allocated from the capital. Hengfeng Bank shall handle the preparatory work in strict accordance with the requirements of relevant laws and regulations, and complete the preparatory work within 6 months from the date of approval. After the completion of the preparatory work, an application for opening business shall be submitted to the China Banking and Insurance Regulatory Commission in accordance with relevant regulations and procedures.
In addition, the China Banking Regulatory Commission also mentioned in a document published on the same day that the China Banking Regulatory Commission also agreed to prepare for the establishment of the Hengfeng Bank Fund Operation Center, which will be completed within 6 months from the date of approval. Accept the supervision and guidance of the Shanghai Banking and Insurance Regulatory Bureau during the preparatory period, and submit an application for opening business in accordance with relevant regulations and procedures after the preparatory work is completed.
It is reported that as early as the end of last year, Hengfeng Bank issued an announcement stating that the company plans to invest no more than 2 billion yuan to establish a wholly-owned Hengfeng Wealth Management Co., Ltd. This time, Hengfeng Bank was approved to establish a wealth management subsidiary, and it will become the second commercial bank approved to establish a wealth management subsidiary during the year.
According to the 2020 annual report of Hengfeng Bank, as of the end of 2020, Hengfeng Bank’s total assets reached 1.1 trillion yuan, achieving 21 billion yuan, 53%. It was 5.3 billion yuan, a year-on-year increase of 703%. The provision coverage ratio was 150.37%, an increase of 29.54% from the end of 2019. The non-performing loan ratio was 2.67%, a decrease of 0.71 percentage points from the end of 2019, achieving a decline for two consecutive years