All six major state-owned banks' AICs have been established, and the number of bank-affiliated institutions has expanded to nine.

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The Postal Savings Bank of China’s subsidiary, China Post Financial Asset Investment Co., Ltd. (referred to as “China Post Investment”), officially received approval to commence operations on March 20. This marks the establishment of the sixth state-owned major bank’s financial asset investment company (AIC), completing the full set of licenses for the six major state-owned banks. Additionally, by the end of 2025, Industrial Bank, China Merchants Bank, and China CITIC Bank, three joint-stock banks, will also have their AICs launched, bringing the total number of bank-affiliated AICs to nine—six state-owned banks and three joint-stock banks.

From dominance by state-owned banks to diversified expansion

As a specialized platform connecting indirect and direct financing, AIC’s core focus is providing “patient capital” to solve the long-term financing challenges faced by enterprises, especially innovative tech companies. Looking back at industry development, in 2017, the first batch of AICs was established by ICBC, ABC, BOC, CCB, and BOT, with the core mission of supporting market-oriented debt-to-equity swaps and resolving high leverage risks in enterprises. At that time, the industry was in its early institutional stage.

By September 2024, the pilot cities for AIC equity investments expanded to 18; in March 2025, the China Banking and Insurance Regulatory Commission issued a notice supporting qualified commercial banks to initiate AICs, further expanding the pilot scope.

With continuous policy support and implementation, the expansion of AICs has accelerated significantly. The industry, initially dominated by major state-owned banks, continues to grow. In 2025, Postal Savings Bank, China Merchants Bank, China CITIC Bank, and Industrial Bank were approved to establish AICs, with three joint-stock banks’ AICs approved to operate by year-end. On March 20, Postal Savings Bank announced it received approval from the National Financial Regulatory Authority for its AIC, China Post Financial Asset Investment, with a registered capital of 10 billion RMB, based in Beijing. With China Post Investment now operational, all six major state-owned banks’ AICs are in place, increasing the total number of bank-affiliated AICs to nine.

Zeng Gang, director of the Shanghai Financial and Development Laboratory, told Securities Daily that the opening of China Post Investment has three significant implications: first, the formation of a multi-layered AIC system; second, a shift in focus toward tech equity investments, with a consensus emerging around early, small, and hard-tech investments; third, the value of AICs as “patient capital” is confirmed, becoming a key link in the “technology—industry—finance” cycle. Currently, AICs are moving from the license dividend period into a capability-driven deep operational phase, reshaping the industry landscape.

Accelerated project investment pace

As AICs are established, the pace of related investment projects has quickened notably. Leading institutions like ICBC, Bank of Communications, and CCB have set up numerous equity funds, mainly investing in pilot cities like Beijing, Shanghai, and Guangzhou. The pace of AIC projects under joint-stock banks is also increasing; for example, China Merchants Bank’s AIC participated in the capital increase of Shenlan Automotive Technology, and China CITIC Bank’s AIC completed an investment in Shenzhen Honghua Topxin Clean Energy, becoming its second-largest shareholder.

Zeng Gang noted that currently, state-owned banks and joint-stock bank AICs have developed differentiated paths. State banks often adopt dual GP and parent-subsidiary fund structures, linking with local state assets and covering traditional and emerging industries. Joint-stock banks mainly focus on direct equity investments and investment-loan linkages, targeting strategic emerging industries like new energy and semiconductors, with higher marketization.

He believes that the dense deployment of AICs by banks is driven by multiple strategic considerations. Policy guidance is a key driver—AICs are positioned as core vehicles for tech finance, and establishing them responds to regulatory requirements and seizes policy benefits. Additionally, facing narrowing net interest margins and slowing traditional credit growth, AICs open new avenues for banks’ equity investments, helping expand non-interest income and transition toward comprehensive financial service providers. Moreover, debt-to-equity swaps can activate existing assets and optimize risk structures, aiding risk management.

However, Zeng Gang also pointed out that the development of bank-affiliated AICs still faces multiple challenges. The main issue is the difficulty in transforming the traditional “debt-oriented” mindset of banks’ credit culture into the “equity logic” required for equity investments, with conflicts between conservative risk control and high-risk investment characteristics, as well as shortcomings in research and investment capabilities. Exit mechanisms are also imperfect, with some projects facing exit difficulties. Additionally, insufficient compensation incentives and lack of a robust fault-tolerance mechanism hinder talent acquisition for equity investments. He suggests that differentiation is key: state-owned banks should leverage their capital and client advantages to focus on large-scale strategic projects and industry chain integration, while joint-stock banks should leverage market-oriented advantages to deepen niche sectors and build professional barriers. Accelerating technological empowerment to enhance research, investment, and risk identification capabilities is also necessary.

Yang Haiping, researcher at the Shanghai Financial and Legal Research Institute, told Securities Daily that AICs are crucial for upgrading the financial system and developing distinctive tech-focused financial models. Future efforts should focus on three areas: first, revitalizing existing assets through market-oriented debt-to-equity swaps and repairing micro-entity balance sheets; second, linking with local government fund platforms to boost tech finance; third, collaborating with parent banks to explore integrated solutions for high-tech industry investment and banking services.