RMB. Photo: iStock

Hua Xia Bank, a publicly traded bank in China, said on Thursday it is planning to invest 5 billion yuan (US$800 million) in a wholly-owned asset management firm, The Paper reported.

It is the second joint-stock bank to announce it plans to set up an asset management subsidiary amid the new rules. Last month, China Merchants Bank was the first bank to come out with a similar plan.

According to the new rules, a commercial bank that has the qualification of a securities investment fund custody business must establish a subsidiary with independent legal status to carry out asset management business by the end of June 2019.

Meanwhile, the commercial bank can hold asset management products issued by subsidiaries, but it should achieve substantial independent trusteeship.

So far, there are no state-owned banks to make such announcement.