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Goldman Sachs Asset Management has obtained initial approval from a joint venture management company with ICBC, one of China’s largest banks, as Wall Street groups expand their presence in the country.
Goldman will have a 51% stake in the company, while the asset management of ICBC, the bank’s subsidiary, will own the rest.
Foreign asset managers are rushing to capitalize on China’s large savings as the government liberalizes its tightly controlled financial system.
BlackRock, the world’s largest asset manager, said this month that it had received permission to start a wealth management joint venture with China Construction Bank and Singapore state fund Temasek.
Wealth management products in China are typically distributed through the national banking network, leading to partnerships between foreign asset managers and local banks. The industry is regulated by the China Banking and Insurance Regulatory Commission or CBIRC.
“China’s wealth management industry has grown thanks to the increase in household wealth and the continued reform of the financial market,” said Tuan Lam, head of the former Japan customer business from Asia Pacific to Goldman Sachs Asset Management.
“This joint venture with China’s preeminent financial institution will accelerate our goal of establishing a leading position in one of the world’s largest and fastest-growing wealth management opportunities,” he added.
Goldman said the association had preliminary approval from the CBIRC.
Its global investment research group estimates that Chinese households’ investment assets will exceed $ 70 billion by 2030, more than half of which will go to products such as securities, mutual funds and asset management products. heritage.
Amundi, the French asset manager, became the first foreign company to launch a majority foreign-owned wealth management business last year when it partnered with the Bank of China. Elsewhere, JPMorgan Asset Management last year unveiled its plans to buy its joint venture fund partner.
Government reforms in China have encouraged greater foreign participation in all financial services, including the possibility for foreign companies to have investment fund companies fully for the first time.
Goldman Sachs said in December it would seek full control of its stock joint venture, which dates back to 2004.
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