China Merchants Bank extends fund cooperation with CMFM, raises fee caps

China Merchants Bank Co. announced the renewal of its Fund Business Co-operation Agreement with China Merchants Fund Management Co. (CMFM) on December 22, 2025. The new agreement, effective from January 1, 2026, to December 31, 2028, outlines the provision of agency distribution of funds and other services by the group to CMFM Group. CMFM is a non-wholly owned subsidiary of the company, held 55% by China Merchants Bank and 45% by CM Securities.

The company has proposed new annual caps for the fees payable by CMFM Group for these services. The caps are set at RMB1,700 million for 2026, RMB2,100 million for 2027, and RMB2,700 million for 2028. These figures represent an increase from the previous caps for 2023-2025, which were RMB1,500 million, RMB1,800 million, and RMB2,200 million respectively. The board determined these caps by considering capital market recovery, potential external factors affecting business, and expected growth in service fees.

This renewal constitutes a non-exempt continuing connected transaction for China Merchants Bank. While subject to reporting, annual review, and announcement requirements under the Hong Kong Listing Rules, it is exempt from independent shareholders' approval. The board believes the agreement, entered into in the ordinary course of business and on normal commercial terms, is fair, reasonable, and in the best interests of the company and its shareholders.