China Everbright Bank (CEB) has received the green light to set up a wealth management subsidiary, xinhuanet reported.

Initially, the new unit will have a registered capital of RMB5bn yuan ($744.8m).

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The bank is said to be one of the first joint stock lenders to get approval for such a move.

Previously, Industrial and Commercial Bank of China, Bank of Communications, Agricultural Bank of China, Construction Bank of China and Bank of China obtained the green light from the China Banking and Insurance Regulatory Commission (CBIRC) to establish wealth management units.

China’s wealth management sector has undergone a massive overhaul in the recent times.

In December 2018, the CBIRC approved wealth management subsidiaries of domestic commercial banks to invest directly in Chinese shares.

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This was the first such initiative in China.

The country also opened up its banking sector to foreign firms in an effort to boost competition.

In 2018, UBS became the first foreign bank to take a controlling stake in a China business.

The Swiss bank raised its stake in its securities joint venture (JV) in China-UBS Securities- from 24.99% to 51%.

Last month, Japanese brokerage Nomura as well as American banking group JPMorgan Chase secured the go-ahead from the China Securities Regulatory Commission to launch securities JVs in China.