Lenders bet big on wealth management units

Subsidiaries can help in transition to high-quality development, say industry experts

Commercial lenders in China are establishing their own wealth management subsidiaries in response to the banking regulator's call to end implicit guarantees for principal and interest payments on wealth management products.

ABC Wealth Management Co Ltd, a subsidiary of Agricultural Bank of China Ltd, officially opened for business in Beijing on Thursday and launched a series of new products. ABC is the last of the five major commercial banks to set up a wealth management subsidiary.