Bank of Ningbo Co Ltd said on Tuesday that its board has approved a proposal to set up a fund management company.

The bank said the board meeting held on Feb 17 proposed that the registered capital assets of the fund management company will not surpass 200 million yuan ($31.79 million).

Also, as the main originator of the fund management company, Bank of Ningbo will have a stake of no less than 51 percent, it added.

Bank of Ningbo is one of the five commercial banks that have been allowed to set up fund management companies under a pilot program approved by the State Council.

The other four are: Industrial Bank Co Ltd, Bank of Beijing 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 in the country.

The China Securities Regulatory Commission said that increased participation by banks 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 the development of the funds industry, and bringing more experience to operations of urban commercial banks.

 

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