DBS, Shenzhen Rural Commercial Bank tie up on China wealth management

Branches of DBS Bank and Shenzhen Rural Commercial Bank (SRCB). DBS acquired a 13 percent stake in SRCB in 2021. Credit: DBSBranches of DBS Bank and Shenzhen Rural Commercial Bank (SRCB). DBS acquired a 13 percent stake in SRCB in 2021. Credit: DBS

DBS Bank (Hong Kong) has tied up with Shenzhen Rural Commercial Bank to offer wealth management services to China mainland investors.

The Hong Kong arm of DBS, Southeast Asia’s largest bank, has tied up with Shenzhen Rural Commercial Bank (SRCB) to offer wealth management services for mainland China investors, the banks said in a press release Tuesday. The services will be offered under the Wealth Management Connect (WMC) program for “Southbound” investors, or residents of nine mainland cities in China’s Greater Bay Area, for investing in products from banks in Hong Kong and Macau.

The DBS tie-up with SRCB – in which the Singapore bank acquired a 13 percent stake last year, making it the largest shareholder – is aiming to use the Chinese bank’s local network to expand the wealth management business in the Greater Bay Area, the release said. The agreement marks DBS’ third WMC tie up with a mainland bank, the release said; in September 2021, DBS said it would work with the Postal Savings Bank of China (PSBC) on the WMC. The Singapore bank also has a WMC tie-up with DBS China, a representative of DBS said.

DBS pursuing WMC partnerships

Sebastian Paredes, CEO of DBS Bank (Hong Kong) said the bank would continue to pursue its WMC strategy for partnerships to expand its reach for Greater Bay Area customers. SRCB has 10 million individual customers and 280,000 small- to medium-sized enterprises (SMEs) as customers, the release said.

DBS Bank (Hong Kong) said that since the program’s October launch, more than 80 percent of its Southbound clients are completely new customers; the average total invested amount per WMC customer has reached more than CNY130,000, compared with the CNY16,365 market average, DBS said, citing China central bank data.

Jie Yuan, president of SRCB, said the mainland bank has been deepening its collaboration with DBS since the Singapore bank took its stake, working on improving customer services by introducing technology.

“To harness the opportunities the WMC scheme provides, we will work closely with DBS Bank (Hong Kong) to bring more diverse and international investment products and digital banking services to customers in the Greater Bay Area,” Jie said in the statement.

This item originally appeared on finews.asia.