China Everbright Bank Said to Consider Wealth-Management Spinoff

China Everbright Bank Co., the banking unit of the state-owned Everbright Group, is considering spinning off its wealth-management business, according to people with direct knowledge of the matter.

The Beijing-based bank hasn’t submitted any proposal to the regulator, the people said, asking not to be identified as they aren’t allowed to speak publicly.

Everbright Bank’s wealth-management business is worth $10.1 billion, or about 33 percent of the company’s market capitalization, China International Capital Corp. analysts said Monday. The lender is valued at $31.9 billion, based on Tuesday’s closing price in Shanghai and Hong Kong.

The stock jumped 4.3 percent in Shanghai and 5 percent in Hong Kong after CICC analysts led by Jie Huang wrote that Everbright Bank might be among Chinese lenders to lead the way in asset spinoffs.

A Beijing-based investor relations official at the lender declined to comment.

Some lenders may start to spin off some businesses such as wealth management, credit cards and private banking as soon as the second quarter of this year, the CICC analysts said. The banks’ medium-term goal would be to list those businesses in initial public offerings to boost valuations as part of lenders’ ownership reforms, they said.

— With assistance by Jun Luo, and Heng Xie

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE