# Exclusive! After 13+ Years of Licensed Operations, Bank of Communications Plans to Apply for Withdrawal of Private Banking License

Recently, the Sina Financial Research Institute exclusively learned that Bank of Communications plans to apply for the revocation of its private banking license.

Since obtaining the private banking license in September 2012, the bank’s private banking customer base has grown from over 10,000 households in 2012 to 102,600 households by mid-2025, making it the sixth commercial bank to join the “100,000 households club,” after ICBC, ABC, CCB, BOC, and CMB.

Notably, in December 2025, Bank of Communications (601328) made a major strategic adjustment, officially establishing a Wealth Management Department at the head office level. Jin Qi, General Manager of the Private Banking Department, also serves as the General Manager of this new department. This adjustment not only signifies an elevation in the strategic position of private banking but also reflects the bank’s shift from an early product agency model to a deep transformation toward full lifecycle asset allocation.

In fact, besides Bank of Communications, four other banks in China have obtained relevant licenses: ICBC (601398), ABC (601288), Industrial Bank (601166), and Hengfeng Bank. So, what are the differences between licensed private banking institutions and other banks’ private banking departments? A person familiar with a state-owned large bank’s private banking department told Sina Financial Research Institute: “There’s not much difference, nor are there advantages or disadvantages.”

Bank of Communications’ private banking license approved for over 13 years, with a wealth management department established at the end of last year

In 2008, coinciding with the bank’s centennial anniversary, the bank’s private banking business officially launched. Its 2008 annual report mentioned, “The personal customer segmentation service system has been further improved, and a pilot private banking service has been launched, enriching the connotations of the Word Wealth and CCB Wealth brands.”

2012 was a milestone year for Bank of Communications. On September 21, the Shanghai Regulatory Bureau approved the opening of its Private Banking Department and issued a Financial License, with the business address in Shanghai, and also approved some leadership positions within the private banking division. Since then, the private banking business was officially approved as an independent licensed entity, marking the establishment of the third licensed private banking institution in China.

From an organizational perspective, the 2014 annual report listed the “Private Banking Business Center (Private Banking Department)” within the organizational chart of CCB Group, as one of its direct-operating units. Meanwhile, the Beijing Management Department, Financial Markets Business Center, and others were also under direct operation.

However, a review of the 2015 annual report shows that the “Private Banking Business Center (Private Banking Department)” was listed under the “Retail and Private Banking Sector (Internet Finance Sector).” Additionally, units such as the Personal Finance Business Department (Consumer Rights Protection Department) and Pacific Credit Card Center also belong to this sector.

Note: The left side shows the disclosure from Bank of Communications’ 2014 annual report; the right side shows the organizational chart from the 2015 annual report.

By 2020, the annual report disclosed that the “Private Banking Department” had been integrated into the Business Operations Management Department.

Note: The figure shows Bank of Communications’ 2020 annual report disclosure.

Currently, wealth management has become a key direction for many banks’ transformation, and private banking is regarded as the “crown jewel.” In 2020, the bank upgraded its “Wealth Management” vision from the 2010 goal of “building a wealth management bank” to “building a world-class bank with distinctive wealth management features and global competitiveness.”

Meanwhile, the 2020 annual report mentioned the launch of private banking operation reform, establishing a Retail and Private Wealth Management Committee, and creating five working mechanisms: Investment Strategy Meetings, Product Access Reviews, Market Promotion, Asset Allocation Work, and a Wealth Management Expert Group, further strengthening the professionalism of wealth management services.

Data shows that the bank’s private banking AUM increased by over 25% compared to the previous year-end in 2020, and the number of private banking clients grew by over 21%. However, from 2021 to the first half of 2025, the growth rates of these two indicators slowed, both under 20%.

Specifically, in 2022, Bank of Communications’ private banking AUM surpassed 1 trillion yuan. Additionally, the number of clients first exceeded 100,000 households in the first half of last year, making it the sixth bank to join the “100,000 households club,” after ICBC, ABC, CCB, BOC, and CMB.

In December 2025, the bank made a major strategic adjustment, establishing a Wealth Management Department at the head office level, with Jin Qi, General Manager of the Private Banking Department, also serving as the General Manager of this new department. This move unifies high-net-worth and mass affluent client service systems, representing an elevation in the strategic importance of private banking and a shift from early product agency models toward comprehensive lifecycle asset allocation.

Public information shows that Jin Qi has experience across commercial banking, investment banking, and asset management, having served as the first President of CCB Wealth Management, with extensive cross-line management experience. His dual roles reflect the bank’s emphasis on private banking and facilitate rapid integration and coordination of the two major business sectors.

In February this year, the bank’s board of directors officially approved the “Deepening Retail Sector Mechanism and System Reform” proposal, marking institutional recognition of the reforms related to the integration of the personal finance sector and organizational restructuring.

Five banks hold private banking licenses; what’s the difference between licensed private banks and “unlicensed” private banking departments?

Since obtaining the private banking license in 2012, Bank of Communications’ private banking department has developed for over thirteen years. Recently, Sina Financial Research Institute exclusively learned that the bank plans to apply for revoking its private banking license.

What are the differences between licensed private banking institutions and other banks’ private banking departments? A person familiar with a state-owned large bank’s private banking department told Sina Financial Research Institute: “There’s not much difference, nor are there advantages or disadvantages.”

Meanwhile, this person also said: “In fact, across various provinces, private banking departments are generally embedded within the personal finance departments, and may not have a standalone business unit. Customers seeking related services need to contact private banking advisors at the branches.”

It’s worth noting that, besides Bank of Communications, four other banks in China have obtained relevant licenses: ICBC, ABC, Industrial Bank, and Hengfeng Bank.

Source: Compiled by Sina Financial Research Institute based on public information.

As early as 2008, the Shanghai Banking Regulatory Bureau and the local commerce authorities issued a private banking license to ICBC under the “Regulations on Promoting the Construction of an International Financial Center in Shanghai,” making it the first licensed private bank in China approved by the China Banking Regulatory Commission.

Later, ABC’s private banking was officially established in 2010, and the bank obtained its private banking license that year. Bank of Communications obtained its license in 2012, becoming the third licensed private bank. Nearly ten years later, Industrial Bank also received its license, and the latest is Hengfeng Bank in 2022.

Public information indicates that “licensed private banking” was a pilot program conducted by the former China Banking Regulatory Commission in Shanghai, with the Shanghai Banking Regulatory Bureau establishing an operational center to supervise licensed institutions functionally, exploring management models for business units. Licensed institutions operate relatively independently, with the head office granting certain operational and management rights, allowing autonomous accounting and direct external cooperation, as well as direct supervision.

Previously, Dai Xuxian, former General Manager of Industrial Bank’s private banking (now Chairman of Industrial Bank Consumer Finance), stated that establishing a private banking license helps the bank further optimize its wealth management business model and operational system, continuously improve private banking services, enhance customer experience, and create a boutique private bank that meets the needs of a better life in the new era, shining the “Wealth Bank” brand.

The standards for licensing vary among these five institutions. For example, ICBC’s customer service states that clients with “monthly average financial assets of at least 8 million RMB or with financial assets between 6 and 8 million RMB, and recognized as qualified or invited clients by the bank, who wish to experience the bank’s professional and exclusive private banking services” can apply.

Bank of Communications’ customer service states that the criteria include “having a quarterly average financial asset of 6 million RMB or more, or a point-in-time financial asset of 6 million RMB or more,” and meeting either condition qualifies for application.

Four major banks’ private banking customer bases exceed 200,000 households; Bank of Communications’ growth rate is the slowest

In the first half of 2025, Bank of Communications successfully joined the “100,000 households club” in private banking, ranking fifth among state-owned banks. ICBC (2024 data), ABC, CCB, and BOC all have private banking customer numbers exceeding 200,000 households.

Moreover, as of the first half of 2025, Bank of Communications’ private banking customer scale growth lagged behind ABC, BOC, and CCB. Among them, Postal Savings Bank’s Dingfu (customers with assets of 6 million RMB or more) experienced the highest growth, increasing by 21.28% since the end of 2024.

Meanwhile, last year’s first half, the private banking AUM of Bank of Communications was the lowest among the disclosed state-owned banks, with ICBC, ABC, BOC, and CCB all exceeding 3 trillion RMB in private banking AUM.

However, in terms of average private banking AUM per household, Bank of Communications ranks second only to BOC, at approximately 13.54 million RMB. Compared to Ping An Bank (over 19 million RMB), there is still room for growth.

It’s worth noting that since 2025, Bank of Communications’ charitable trust development has accelerated significantly. In December last year, Jin Qi mentioned in an interview that nearly 30 charitable financial products were newly established within the year, attracting over 2,300 clients.

According to the bank’s 2021 annual report, it launched its first charitable trust product tailored for family clients with charitable intentions. In 2023, the bank actively supported common prosperity by innovating charitable trust service ecosystems, leveraging “finance + charity” synergy, and implementing projects like “The Most Beautiful White Tea,” “Enjoyment of Happiness,” and “Lighting Dreams,” creating a positive cycle of public welfare and charity.

In 2024, the bank’s family trusts, household trusts, pension trusts, and charitable trusts systems continued to improve, with the family wealth business growing by 43.56% year-over-year.

Jin Qi stated that the demand for charity is closely related to residents’ wealth growth. As per capita GDP increases, clients pay more attention to public participation methods and transparency of projects, including fund flow and implementation status.

In fact, besides ICBC, ABC, BOC, CCB, and Bank of Communications, private banking clients of CMB and Ping An Bank have also exceeded 100,000 households.

According to CMB’s Q3 2025 report, as of September, the bank’s private banking clients (retail clients with an average total asset of 10 million RMB or more) numbered 191,418, a 13.2% increase from the end of last year, ranking first among joint-stock banks.

Another private banking client base exceeding 100,000 households is Ping An Bank, with 105,600 clients at the end of 2025, up 9.1% year-over-year; private banking AUM reached 1,991.313 billion RMB, a 0.8% increase.

Additionally, by the end of 2025, CITIC Bank’s private banking clients reached 96,600 households, up 14.93% from the previous year, with potential to break into the “100,000 households club.”