The fourth this year, investing billions, PSBC is closely following the plan to establish this subsidiary

On the evening of July 16, PSBC announced the investment to establish a financial asset investment company, marking the fourth bank this year to set up such a company.

PSBC plans to invest RMB 10 billion of its own funds as the investment entity to initiate the establishment of China Post Financial Asset Investment Co., Ltd. (tentative name, the company name will be subject to approval by relevant regulatory and market supervision authorities).

The registered capital of China Post Investment is proposed to be RMB 10 billion and will be managed as a wholly-owned first-level subsidiary of the bank, with the specific business scope subject to approval by relevant regulatory authorities. China Post Investment will strictly adhere to all laws, regulations, and regulatory requirements, establish a sound corporate governance structure, and conduct various businesses based on effective risk management.

PSBC also stated that this investment is an important measure in response to the national call and serves the construction of a strong technology nation, which is beneficial for the bank to enhance its comprehensive service capabilities, effectively implement the "five major articles" of finance, build a new force in technology finance, further support technological innovation and private enterprises, assist in the development of new productive forces, and better serve the real economy. The funding for this investment comes from PSBC's own funds and will not have a significant impact on the bank's financial condition or operating results.

This investment still requires approval from relevant regulatory authorities.

Li Yunze, director of the National Financial Regulatory Administration, stated at a press conference held by the State Council Information Office on May 7 that support will be given to qualified national commercial banks to establish financial asset investment companies, with approvals to be granted soon, and one will be approved today (May 7) to promote increased investment in technology innovation enterprises.

On that day, Industrial Bank was approved to establish Industrial Bank Financial Asset Investment Co., Ltd. (tentative name). The registered capital is RMB 10 billion, and it will be a wholly-owned subsidiary of Industrial Bank.

On May 8, China Merchants Bank and CITIC Bank announced plans to establish financial asset investment companies, stating that the investment matters still require review and approval from regulatory authorities.

In early June, CITIC Bank announced that it had received the approval from the National Financial Regulatory Administration regarding the establishment of CITIC Financial Asset Investment Co., Ltd. (tentative name, subject to approval by relevant regulatory and market supervision authorities).

In early July, China Merchants Bank also received regulatory approval, making it the third commercial bank this year to be approved for the establishment of an AIC.

At this pace, barring any surprises, the progress of PSBC's financial asset investment company is unlikely to be slow.

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