Lates News

From the official announcement to the approval, it took two months for China Merchants Bank's AIC to be formally named. On the evening of July 3, China Merchants Bank announced that it had been approved to establish Zhaoyin Financial Asset Investment Co., Ltd. (referred to as Zhaoyin AIC). After the establishment work is completed, it will apply for opening according to relevant regulations and procedures to the regulatory authorities. According to reporters, China Merchants Bank will draw some personnel from within the bank to form a new team for Zhaoyin AIC, mainly from its subsidiary Zhaoyin International, as well as the Asset and Liability Department, Strategic Customer Department, Investment Banking Department, and other head office departments will also be involved in the establishment. China Merchants Bank stated in the announcement that the establishment of AIC will help to carry out market-oriented debt-to-equity conversion and equity investment pilot business. With recent approvals for the establishment of AIC for Industrial Bank, CITIC Bank, and China Merchants Bank, the number of officially recognized bank AIC has expanded to 8. Analysts point out that AIC is beneficial for reaching more customer groups and improving the bank's profitability, but it will also bring multiple challenges such as capital consumption and risk control. (21st Century Business Herald)