Core Viewpoint - Postal Savings Bank of China (PSBC) has established its own Asset Investment Company (AIC) after an 8-year wait, aligning with the other five major state-owned banks in China [1][3]. Group 1: Establishment of AIC - PSBC plans to invest RMB 10 billion to establish the China Post Financial Asset Investment Company (tentative name) [1]. - The establishment of AIC allows PSBC to enhance its comprehensive service capabilities and support technological innovation and private enterprises [3]. Group 2: Background and Regulatory Changes - The development of AICs began in 2016 when the State Council initiated market-oriented debt-to-equity swaps, allowing banks to set up specialized institutions for related businesses [2]. - The first five major state-owned banks established their AICs in 2017, but no new licenses were issued for several years until the recent regulatory changes [2][4]. - In March 2023, the National Financial Regulatory Administration issued a notice supporting the establishment of AICs, which has led to a renewed interest among banks [2][3]. Group 3: Expansion of Functions and Investment Scope - The functions and investment scope of AICs have expanded from primarily serving supply-side structural reforms to include direct equity investments [4][5]. - The pilot program for direct equity investment was first launched in Shanghai in 2020, and the scope has since been expanded to 18 major cities [5][6]. - The internal coordination between investment and lending within banks is expected to improve, facilitating better financing services for technology-driven enterprises [6].

Group 1 - A new financial asset investment company, 招银金融资产投资有限公司 (招银AIC), has been approved for establishment by 招商银行, following approvals for 兴银金融资产投资有限公司 and 信银金融资产投资有限公司 from 兴业银行 and 中信银行 respectively [1][3] - 招银AIC will be established under the supervision of the National Financial Regulatory Administration, with 招商银行 planning to submit an application for commencement after the establishment process is completed [1] - The registered capital for both 兴银金融资产投资有限公司 and 信银金融资产投资有限公司 is set at 100 billion yuan, fully funded by their respective parent banks [3] Group 2 - The establishment of AICs is seen as a strategic move for banks to enhance their equity investment capabilities, diversify income sources, and improve profitability amidst pressure on net interest margins [3] - Experts suggest that AICs should focus on optimizing institutional processes, nurturing professional talent, and conducting market research to support technological innovation and the development of private enterprises [3] - AICs are encouraged to leverage external funding sources, such as insurance capital, to expand their equity investment capabilities and better serve technological innovation and private enterprises [3]

Core Viewpoint - The establishment of the "Xingyin Financial Asset Investment Company" marks the sixth bank-affiliated AIC, aimed at enhancing investment in technology-driven enterprises [1][2]. Group 1: Establishment and Regulatory Framework - The approval for Xingyin Financial Asset Investment Company requires completion of the establishment within six months and prohibits financial activities during the setup phase [2]. - The establishment aligns with the regulatory push to support commercial banks in setting up financial AICs, as indicated by the Financial Regulatory Administration [2][6]. Group 2: Strategic Focus on Technology Finance - Xingyin Bank aims to leverage its experience in private equity and venture capital to enhance its role in technology finance, which is considered a key area for growth [2][3]. - The bank has positioned technology finance as its "fourth card," alongside green banking, wealth management, and investment banking, with a reported technology loan balance exceeding 1 trillion yuan as of February [2]. Group 3: Expansion of Financial AICs - The current landscape includes five state-owned banks with established AICs, initially focused on debt-to-equity swaps, now expanding into equity investment [4][5]. - Recent policy changes have broadened the scope for financial AICs, allowing for direct equity investment and participation from insurance funds, with a target to enhance support for technology finance [5][6]. Group 4: Market Impact and Future Prospects - The total signed intention amount for financial AIC equity investment has surpassed 380 billion yuan, indicating strong market interest [7]. - The evolution of bank-affiliated AICs is expected to facilitate banks' participation in technology finance and equity markets, leading to innovative business opportunities in venture capital and corporate restructuring [7].