[ad_1]
Goldman Sachs has gained initial approval from Chinese regulatory authorities with ICBC, one of China’s largest banks, for a joint venture to manage wealth as Wall Street’s expanding presence in the country.
Goldman Sachs Asset Management will own a 51 percent stake in the project, and ICBC’s wealth management, a subsidiary of the bank, will own the rest.
Foreign asset managers are in a hurry to take advantage of China’s large savings pool as it liberalizes its government-controlled financial system.
BlackRock, the world’s largest asset manager, said this month that it has received permission to start a wealth management business joint venture China Construction Bank and Singapore Temas with state fund.
Wealth management products in China are typically distributed through the domestic banking network, encouraging foreign asset managers to cooperate with local banks.
Industry is regulated by the Chinese Banking and Insurance Regulatory Commission, CBIRC. Goldman said the partnership had prior permission from the CBIRC.
“China’s wealth management industry has grown as a result of increasing domestic wealth and reforming financial markets,” said Tuan Lamek, head of Japanese Asia-Pacific business for Goldman Sachs Asset Management.
“This joint venture with China’s renowned financial institution will accelerate the establishment of a leadership position in one of the largest opportunities for wealth management in the world,” he added.
Goldman’s global investment research estimates that Chinese homes will exceed $ 70 billion in investment assets by 2030, more than half of which will go to products such as securities, investment funds and wealth management products.
A report by Boston Consulting Group and China Everbright Bank showed that China’s vast wealth market was worth Rmb121.6tn ($ 18.9tn) in 2020, up 10 percent from a year earlier.
Amundi, France’s asset manager, became the first foreign company to start a business to manage the majority of foreign-owned wealth when it partnered with the Bank of China last year. JPMorgan Asset Management last year unveiled plans to acquire its joint venture partner.
Reforms by Chinese governments have encouraged greater foreign involvement in financial services, including allowing foreign companies to take over investment fund businesses for the first time.
[ad_2]
Source link
