Shanghai, China
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BNP Paribas Receives China Approval to Setup Asset & Wealth Management Joint Venture with Agricultural Bank of China

20th October 2022 | Hong Kong

BNP Paribas has received China regulatory approval (China Banking and Insurance Regulatory Commission, CBIRC) to setup an Asset & Wealth Management joint venture with one of China’s largest bank Agricultural Bank of China.  In China, BNP Paribas has an existing mutual fund joint venture with Haitong Securities and a minority share in Bank of Nanjing.  Earlier in January 2022, Schroder and Bank of Communication, the 5th largest bank in China, received regulatory approval to commence their Wealth Management joint venture business in China on the 26th of January 2022 (Schroder BOCOM Wealth Management).  In May 2021, Goldman Sachs Asset Management and China’s largest bank ICBC (Industrial and Commercial Bank of China), received approval from the China Banking and Insurance Regulatory Commission (CBIRC) to form a wealth management joint venture in China.   See more joint venture below, and launch of new China Asset Management Association. 

“ BNP Paribas Receives China Approval to Setup Asset & Wealth Management Joint Venture with Agricultural Bank of China “

 



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Do you know: In Sept 2021, BlackRock first China mutual fund had raised $1.03 billion (CNY 6.68 billion) from 111,000 Chinese investors in 5 days (30/8/21 to 3/9/21).  The BlackRock China New Horizon Mixed Securities Investment Fund was launched on 30th August 2021 and stopped taking new subscription on 3rd September 2021, after only 5 working days instead of the planned launch for 2 weeks.

 

In 2019, China’s Financial Stability Development Committee announced plans to open up the financial market in China

Shanghai, China

In 2019, China’s Financial Stability Development Committee announced plans to open up the financial market in China, including easing foreign ownership limits for certain financial services.  With the preliminary approval, Goldman Sachs joined international asset management firms, BlackRock, Amundi, Schroders and JP Morgan in establishing joint venture with the largest banks in China.  

Earlier in May 2021, BlackRock, the world’s largest asset manager with $9.01 trillion AUM, received approval for a wealth management license in China in a joint venture with China Construction Bank and Temasek (Sovereign Wealth Fund of Singapore).  The joint venture, BlackRock CCB Wealth Management, is 50.1% owned by BlackRock, 40% by China Construction Bank and 9.9% by Temasek.  French asset manager Amundi has also setup a wealth management joint venture with Bank of China, Schroders is partnering with Bank of Communications while JP Morgan is partnering with China Merchant Bank.

Asset Managers and Chinese Banks Partnerships:

  • Goldman Sachs and ICBC (Industrial and Commercial Bank of China)
  • BlackRock and China Construction Bank (& Temasek)
  • Amundi and Bank of China
  • Schroders and Bank of Communications
  • JP Morgan and China Merchant Bank

 

China Launches New Asset Management Association of Shanghai & New Trial Program for Cross-Border Transfer of Private Equity & Venture Capital Shares, To Become Leading International Asset Management Centre

In September 2022, China has launched a new Asset Management Association of Shanghai with 123 corporate members (trust firms, insurance, asset management & funds), speeding up efforts to transform Shanghai to become a leading international Asset Management Centre.  At the launch, the Asset Management Association of Shanghai also announced the launch of a new trial program for cross-border transfer of private equity & venture capital shares.  Shanghai has more than 4,600 asset managers (China / Global).  In the latest Global Financial Centres Index (GFCI 32), Shanghai is ranked 6th in the world (New York, London, Singapore, Hong Kong, San Francisco, Shanghai).




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