Banks change tack to cut losses

BOCOM to set up new subsidiary for greater presence in asset management

Bank of Communications Co Ltd became the nation's first large State-owned commercial bank to establish a wholly owned asset management subsidiary to strengthen risk control and improve its asset management capability.

The bank announced on Thursday the plan to establish BOCOM Asset Management Co Ltd in Shanghai with a registered capital of no more than 8 billion yuan ($1.25 billion), to be funded by the bank's own capital. The subsidiary's business scope will include investment and asset management, subject to regulatory approval.