The China Banking and Insurance Regulatory Commission has given the green light to the Industrial and Commercial Bank of China to set up an asset management subsidiary, according to a statement on its website, China Securities Journal reported.

The regulator has accepted a number of applications from other commercial banks, and about 30 other banks are also planning to apply, the newspaper said.

ICBC plans to invest no more than 16 billion yuan with its own funds to establish a wholly-owned subsidiary, ICBC Financial Management Co. Ltd., to publicly issue wealth management products, provide financial advice and consulting services.

Previously, CCB, BOC, ABC and Bank of Communications have all been approved to set up asset management subsidiaries with registered capital of 15, 10, 12 and 8 billion yuan respectively.

Analysts think that the regulator is giving approvals faster than expected, showing their intention to accelerate the transformation of banking via the development of the wealth management business through their financial subsidiaries.