Xin Lang Cai Jing·2025-10-28 02:48Core Viewpoint - The establishment of the China Post Financial Asset Investment Company marks a significant development in the banking sector, enhancing the capacity for equity investment and supporting technological innovation and private enterprises in China [1][2]. Group 1: Establishment of AIC - On October 27, the Postal Bank announced the approval to establish the China Post Financial Asset Investment Company with a registered capital of 10 billion yuan [1]. - This new company will be a wholly-owned subsidiary of the Postal Bank and aims to support the development of new productive forces and improve service quality for the real economy [1]. Group 2: Background and Regulatory Changes - Historically, banks faced restrictions on direct equity investments due to the Commercial Banking Law, leading to indirect investments through private wealth management products or overseas subsidiaries [2]. - The pilot program for bank-affiliated AICs began in 2017, with five major banks establishing their investment companies primarily to address non-performing assets and high corporate leverage [2]. Group 3: Expansion of AICs - The pilot program for AICs has expanded significantly, with the scope now covering 18 cities, and more banks, including joint-stock banks, are expected to establish their AICs [3]. - As of August 2025, bank-affiliated AICs contributed 3.021 billion yuan, accounting for 27% of total investments, with the Industrial Bank's investment leading at 1.447 billion yuan [3]. Group 4: Financial Performance - In the first half of the year, profits for the major AICs showed mixed results, with only the Agricultural Bank's investment company reporting a profit increase, while others experienced significant declines [4]. - The challenges in equity investment, particularly with the slowdown in IPOs, have led to difficulties in exiting investments, prompting a shift towards mergers and acquisitions as alternative exit strategies [5].