China Approves New Asset Investment Arms for CITIC Bank, China Merchants Bank
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China CITIC Bank and China Merchants Bank. Photo: VCG
Two more leading joint-stock commercial banks have secured official approval to open financial asset investment companies (AICs), expanding the roster of lenders authorized to conduct debt-for-equity swaps and direct equity investments to nine.
China CITIC Bank Corp. Ltd. said it has received a green light Friday from the National Financial Regulatory Administration to set up CITIC Financial Asset Investment Co. Ltd. The new entity will have a registered capital of 10 billion yuan ($1.4 billion) and be based in Guangzhou.
China Merchants Bank Co. Ltd. (CMB) also secured regulatory approval to establish its own investment arm in Shenzhen. The new subsidiary, CMB Financial Asset Investment Co. Ltd., is registered with 15 billion yuan in capital — the most highly capitalized AIC at its inception.
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- China CITIC Bank and China Merchants Bank received approval to establish financial asset investment companies, bringing the total authorized lenders to nine.
- CITIC’s AIC is capitalized at 10 billion yuan, while CMB’s is the largest at 15 billion yuan; both will focus on tech, green, and advanced manufacturing sectors.
- Since 2020, AICs can invest more heavily in direct equity, with regulatory limits raised and geographic coverage expanded to 18 cities by September 2024.
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Who’s Who
- China CITIC Bank Corp. Ltd.
- China CITIC Bank Corp. Ltd. (中信银行股份有限公司) has received approval to establish CITIC Financial Asset Investment Co. Ltd., a financial asset investment company (AIC). Based in Guangzhou, this new entity will have a registered capital of 10 billion yuan. It aims to support "tech finance" through market-based debt-for-equity swaps and equity investments in strategic emerging industries.
- CITIC Financial Asset Investment Co. Ltd.
- CITIC Financial Asset Investment Co. Ltd. is a newly approved financial asset investment company (AIC) established by China CITIC Bank Corp. Ltd. It has a registered capital of 10 billion yuan ($1.4 billion) and is based in Guangzhou. Its mission is to support "tech finance" through market-based debt-for-equity swaps and equity investments in strategic emerging industries and "specialized and innovative" firms.
- China Merchants Bank Co. Ltd.
- 获得监管机构批准，成立招银金融资产投资有限公司 (CMB Financial Asset Investment Co. Ltd.)，注册资本为150亿元人民币，成为成立之初资本金最多的金融资产投资公司(AIC)。该子公司将专注于科技、绿色和低碳倡议以及先进制造业，以帮助公司降低杠杆率。
- CMB Financial Asset Investment Co. Ltd.
- CMB Financial Asset Investment Co. Ltd. is a newly approved financial asset investment company established by China Merchants Bank Co. Its registered capital is 15 billion yuan, making it the most highly capitalized AIC at its inception. This subsidiary, based in Shenzhen, will focus on technology, green and low-carbon initiatives, and advanced manufacturing to help companies reduce their leverage ratios.
- Industrial Bank Co. Ltd.
- Industrial Bank Co. Ltd. (兴业银行股份有限公司) received approval on November 7 to open its own financial asset investment company (AIC). This AIC, launched on November 16 in Fuzhou, has a registered capital of 10 billion yuan.
- Postal Savings Bank of China Co. Ltd.
- The **Postal Savings Bank of China Co. Ltd.** was approved in late October to establish its own 10 billion yuan investment arm. It was the last of the six largest state-owned banks to obtain an approval for an AIC (financial asset investment company).
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What Happened When
- 2017：
- China's first Asset Investment Companies (AICs) were established by the five largest state-owned banks to tackle corporate debt.
- February 2020：
- The scope of permissible investments for AICs was expanded; regulators allowed direct equity investments in Shanghai.
- By September 2024：
- The AIC direct equity investment program expanded to 18 cities and the cap on equity investments was raised to 10% of total assets from 4%.
- Early 2025：
- During national legislative meetings, policymakers extended the AIC pilot nationwide and authorized insurance funds to participate.
- Late October 2025：
- Postal Savings Bank of China Co. Ltd. was approved to establish its own 10 billion yuan investment arm.
- November 7, 2025：
- Industrial Bank Co. Ltd. received approval to open its AIC.
- November 16, 2025：
- Industrial Bank Co. Ltd. officially launched its 10 billion yuan AIC unit in Fuzhou.
- November 22, 2025：
- China CITIC Bank Corp. Ltd. received approval from the National Financial Regulatory Administration to set up CITIC Financial Asset Investment Co. Ltd.
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