Core Viewpoint - Chengdu Bank, Chengdu Rural Commercial Bank, and Sichuan Bank are reportedly planning to jointly establish a wealth management company, with preparations already underway. Chengdu Bank has stated that there is no confirmed news yet and will announce any updates in due course [1] Group 1: Industry Context - A total of 32 bank wealth management subsidiaries have been established nationwide, including 6 from state-owned banks, 12 from joint-stock banks, 8 from city commercial banks, 1 from rural commercial banks, and 6 joint venture wealth management companies [1] - Established institutions have a significant advantage in market share and distribution channels due to their first-mover advantage, while new entrants face competitive pressure [1][2] Group 2: Joint Establishment Implications - If the three banks proceed with their joint establishment plan, it will set a precedent for small and medium-sized banks to collaborate in setting up wealth management companies. This model is reasonable in terms of capital thresholds, regulatory policies, regional collaboration, and market competition [2] - The minimum registered capital for wealth management companies is set at 1 billion RMB, which poses a capital burden for small and medium-sized banks. Joint establishment can effectively share capital investment and operational costs, reducing the financial burden on individual banks [2] Group 3: Challenges and Market Dynamics - Potential challenges exist in the joint establishment of wealth management companies, as different shareholders may have varying asset scales, customer bases, and strategic goals, leading to possible disagreements on company strategy, product development, and profit distribution [2] - Since the first batch of bank wealth management companies was approved in 2019, the number has increased to 32. The competition in the wealth management market is intense, with leading companies having established scale advantages and channel barriers, making it difficult for new entrants to compete [2][3] Group 4: Future Trends and Regulatory Environment - The wealth management market is expected to evolve into a differentiated competitive landscape, with different types of wealth management companies focusing on their respective fields and emphasizing localized services and specialized product development [3] - Regulatory support for small and medium-sized banks to enter the wealth management market through collaboration is anticipated, with the possibility of more similar joint establishment cases emerging in the future [3] - Small and medium-sized banks are under pressure to rectify their proprietary wealth management businesses by the end of 2026, as those without established wealth management companies must clear their existing wealth management business [3] Group 5: Market Size and Distribution Channels - As of June 2025, the total scale of bank wealth management products in China is 30.67 trillion RMB, with 3.19 trillion RMB managed by 194 banks. Many small and medium-sized banks have seen a significant reduction in their wealth management scale, with some completely exiting the market [4] - The number of banks engaged in distribution business has rapidly expanded from 97 at the end of 2021 to 569 by mid-2025, becoming an important pathway for small and medium-sized banks to participate in the wealth management market [4]