CMB eyes asset offshoot

Bank's proposed wholly-owned wealth management arm to help counter risk

China Merchants Bank (CMB) is looking to set up a wholly-owned asset management arm, the first commercial bank to do so if it is approved, in response to regulators' ramping up efforts to counter risks linked to a vast shadow banking sector.

In the guideline on asset management jointly issued by the financial regulators last December, the draft, which has not been formally released, proposed that a commercial bank should establish a subsidiary with an independent legal person status to carry out asset management business.