China Everbright Bank (CEB) has received the green light to set up a wealth management subsidiary, Beijing's official news agency xinhuanet reported.
The wealth management subsidiary of CEB will be established with a registered capital of 5 billion yuan ($746.3m), the company said in a statement filed with the Shanghai Stock Exchange.
The bank is said to be one of the first joint stock lenders to get approval for such a move.
Previously, Industrial and Commercial Bank of China, Bank of Communications, Agricultural Bank of China, Construction Bank of China and Bank of China obtained the green light from the China Banking and Insurance Regulatory Commission (CBIRC) to establish wealth management units.
Last December, the China Banking and Insurance Regulatory Commission released guidelines for commercial banks to conduct wealth management businesses to offer more financial products to meet the demands of the real economy.
The country also opened up its banking sector to foreign firms in an effort to boost competition.
In 2018, UBS became the first foreign bank to take a controlling stake in a China business.
