BEIJING, April 9 (Xinhua) -- The China Banking and Insurance Regulatory Commission (CBIRC) has recently approved Changshu Rural Commercial Bank to construct China's first investment management rural bank in Haikou, capital of south China's Hainan Province, according to Changshu Rural Commercial Bank.
The investment management rural bank will replace the intensive management of other rural banks under the original parent bank, whose banking license could carry out mergers and acquisitions of rural banks in China.
According to the document issued by the former China Banking Regulatory Commission (CBRC) in January last year, commercial banks that have invested in a certain number of rural banks and with good management services may establish or select a new rural bank as an investment management bank.
In 2018, Chinese commercial banks including Bank of Beijing and Shanghai Pudong Development Bank announced to set up investment management rural banks after the document released by former CBRC.
However, by far, only Changshu Rural Commercial Bank has been approved to construct the investment management rural bank in China.
Changshu Rural Commercial Bank said that the construction of the investment management rural bank will be beneficial for Changshu Rural Commercial Bank to carry out business activities within the registered location, as well as to expand the development space of its bank. (Edited by Jiang Feifan)