French asset management giant Amundi will establish a joint venture with Bank of China’s Wealth Management arm. The China Banking and Insurance Regulatory Commission (CBIRC) has approved to set up a top asset management joint venture in the country.
Amundi is Europe’s largest asset manager by assets under management. The new joint venture is expected to launch in the second half of 2020. Amundi will own 55 percent of the new venture and the remaining 45 percent will be owned by Bank of China’s Wealth Management arm.
Bank of China chose Amundi to become a majority shareholder in the pioneer project. That, in turn, will help the latter to strengthen its presence in the Chinese market.
Liange Liu, chairman of Bank of China, told the local media, “Bank of China and Amundi jointly establish the first asset management joint venture company under the wealth management framework regulated by CBIRC with a foreign shareholder holding a majority stake.”
The joint venture between Amundi and Bank of China reflects fast developments in China’s financial market in terms of trends and international investors. It is also expected to promote China’s asset management market that will share the characteristics of both entities.
The deal also marks a significant move on the restructuring front. The CBIRC said in a statement that the joint venture will help to introduce advanced management and international expertise into Chinese wealth management institutions.
Other international asset management companies are in talks with Chinese partners to set up business in the country’s asset management market.