China's first ever foreign-owned wealth management firm settles in Qingdao
By Ding Yuanyuan ( chinadaily.com.cn )
Updated: 2016-11-08
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The opening-up of China’s financial sector entered a new phase recently when Yicai Wealth Management Co Ltd completed its registration in Qingdao, Shandong province, becoming the first ever wholly foreign-owned wealth management company to be established in China.
The registration of the new 146 million yuan ($21.5 million) venture marks the start of a new era for Chinese finance and the city of Qingdao, and the culmination of a long journey for Yicai's backers, Italy's largest banking group Intesa Sanpaolo.
How Qingdao trumped the first-tier cities to attract Intesa Sanpaolo
Qingdao proved to be the perfect fit for Intesa Sanpaolo, whose relationship with the city goes back to 2007 when the group acquired a 15-percent stake in the Bank of Qingdao.
The coastal city is already characterized by widespread wealth, and the Italian bank believes that it has very high potential to continue growing rapidly in the coming years.
A recent report by the Economist Intelligence Unit predicts that by 2030 Qingdao will have more than 2 million high-income residents earning more than 200,000 yuan per year, and this is also likely to lead to a surge in the number of high net worth individuals (HNWI) living in the city.
Qingdao also offers Intesa Sanpaolo a very favorable business environment thanks to the Chinese government's recent decision to name the city a wealth management pilot zone, giving the city the freedom to introduce innovative policies in a bid to attract local and international wealth management companies.
One senior manager from Intesa Sanpaolo shared that the bank expects Qingdao's pilot zone status to lead to more relaxed restrictions on setting up new companies in the city, more favorable new regulations, and a more open market for foreign companies within the zone.
The pilot zone could also help Qingdao turn into a financial hub attracting HNWI customers from across mainland China, according to the senior manager.
The city also has the advantage of providing easy access to the rest of Shandong province.
The vision and support of the Qingdao government was also a crucial factor in Intesa Sanpaolo's decision, the senior manager added. The bank was impressed by the city's plans for the wealth management sector and its strong support for Intesa Sanpaolo's projects.