Five more banks to set up fund management firms

Five more commercial banks are likely to be allowed to set up fund management companies under a pilot program approved by the State Council.

According to the China Securities Regulatory Commission, the five are Industrial Bank Co Ltd, Bank of Beijing Co Ltd, Bank of Ningbo Co Ltd, Bank of Nanjing Co Ltd, and Bank of Shanghai Co Ltd.

China currently has eight fund management companies set up by commercial banks among a total of 73 fund management companies.

The CSRC added that more banks participating in the pilot program will help to develop more channels for savings to be orderly transferred into the capital market, involving more institutional investors, boosting development of fund industry, and bringing more experience to operations of urban commercial banks.

Fund companies set up by banks will have a higher market share thanks to their easy access to clients and more opportunities to recommend fund products to buyers, fund market analysts said.

Amid a market facing difficult times for issuance of fund products, the involvement of more banks in the pilot program will also bring more liquidity and fierce competition to the market, they added.

wuyiyao@chinadaily.com.cn