Home Business Quick look | The second bank wealth management subsidiary came during the...

Quick look | The second bank wealth management subsidiary came during the year, with a duration of wealth management over 100 billion

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Image source: Tuworm Creative

Reporter | Hu Yingjun

The second bank’s wealth management subsidiary was approved during the year.
On June 21, the official website of China Banking and Insurance Regulatory Commission issued the “Approval for the Establishment of Hengfeng Wealth Management Co., Ltd.”, agreeing to Hengfeng Bank’s investment of 2 billion yuan to build Hengfeng Wealth Management Co., Ltd., and the required funds should be 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. The preparation work accepts the supervision and guidance of the China Banking and Insurance Regulatory Commission. During the preparation period, no financial business activities are allowed. 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.
Hengfeng Wealth Management is the second bank financial management subsidiary approved after Bohai Wealth Management in 2021. This also means that among the 12 national joint-stock banks, 11 bank financial management subsidiaries have been approved.
According to Jiemian News reporter, Hengfeng Wealth Management is registered in Laoshan District, Qingdao. This is also the second bank wealth management subsidiary registered in Qingdao in addition to Everbright Wealth Management.
A relevant person from Evergrowing Bank stated that expanding retail is a major strategy that the bank has always adhered to. The closed-end wealth management products launched by the bank, such as the Great Profit series and the Zengxiang series of wealth management products, and the open-end wealth management products such as the Hengmeng wallet, the progressive T+1 gain-winning series, and the Hengxin series of net wealth management products, are both profitable. And liquidity, which can meet the wealth management needs of different types of customers, has always been popular in the market. The establishment of a wealth management subsidiary has been approved, which has opened up a broad space for Evergrowing Bank to expand its retail business and expand its asset management landscape. Hengfeng Wealth Management will be guided by the steady value-added of management assets, taking digital transformation as an opportunity, and agile services as a means, focusing on improving investment and research capabilities and risk control capabilities, resolutely returning to the business origin of asset management, and taking serving the real economy as the foundation and working hard to achieve Customers provide long-term stable returns.
Hengfeng Bank is one of 12 national joint-stock commercial banks, formerly known as Yantai Housing Savings Bank established in 1987. In 2003, approved by the People’s Bank of China, it was restructured into Evergrowing Bank Co., Ltd. In 2019, the market-oriented reform stock reform account was completed, and Central Huijin became the largest shareholder.
Hengfeng Bank is headquartered in Jinan, Shandong, and has 310 branches across the country. Financial data shows that as of the end of 2020, Hengfeng Bank’s total assets reached 1.1 trillion yuan, and its operating income was 21 billion yuan, a year-on-year increase of 53%. Net profit 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.
At the end of the reporting period, the scale of various wealth management products maintained by Hengfeng Bank was RMB 110.685 billion. Among them, the pressure on capital preservation and financial management dropped to zero