China CITIC Bank has secured approval from the Chinese banking regulator to set up a wealth management unit, according to local news agency Xinhua.
The wealth management unit will be established with a registered capital of no more than 5 billion yuan ($711.2m), the company said in a statement.
Founded in 1987, China CITIC Bank is one of the largest lenders in China. It's portfolio of services includes deposits, loans, domestic settlement, and currency trading.
Last year, CBIRC issued new guidelines for the commercial banks that seek to offer wealth management services.
In December last year, the CBIRC released guidelines for commercial banks to conduct wealth management businesses to offer more financial products to meet the demands of the real economy.
Commercial banks could either set up separate units to conduct wealth management businesses or include such operations within the framework of other business units, according to the guidelines.
In the recent years, there is reportedly a spike in efforts by local lenders to set up wealth management units. China's wealth management market is estimated to be worth some 22 trillion yuan($3.1trn).
The last of China's Top 6, Postal Savings Bank of China (PSBC) has commenced operations of its fully owned wealth management subsidiary in Bejing this week.
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