The Bank of China (BOC) is planning to invest no more than 10 billion yuan (US$1.44 billion) to launch a wholly-owned wealth management subsidiary, The Paper reported.

Following 14 small and medium-sized commercial banks that have announced the proposed establishment of wealth management subsidiaries, BOC is the first among the big four state-owned banks who made the move.

The subsidiary will use BOC’s own funds to meet the latest requirements of the regulator.

The official rules on commercial banks’ wealth management subsidies will be released later this month.

According to the draft, bank wealth management firms will mainly focus on further lowering the starting price of sales of wealth management products.

Subsidiaries will also be allowed to create wealth management products to directly or indirectly invest in the stock market, or, cooperate with private equity funds.