Bank of Qingdao Ltd. (03866.HK) aims to grow its asset management business to a scale that would be large enough for a potential spin-off in the future, the Hong Kong Economic Journal reported.
The municipal commercial bank, whose shares will debut on the Hong Kong stock exchange this Thursday, hopes that non-interest income contribution at the lender will expand significantly and match the ratios at larger banks, the report said, citing chairman Guo Shaoquan.
Industrial and Commercial Bank of China Ltd. (01398.HK) and Bank of China Ltd. (03988.HK) currently have 23 percent and 31 percent of their incomes coming from intermediate businesses respectively.
Meanwhile, the non-interest income share at Bank of Qingdao is only at 18 percent.
The bank has about 40 billion yuan of assets under management, compared with a total of 20 trillion yuan of all banks in mainland China, a business that has been growing rapidly in the country.
Bank of Qingdao could apply for licenses that will allow its asset management subsidiary to operate on a stand-alone basis, said Liu Peng, head of the bank’s financial market department.
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