China has approved a wealth management joint venture (JV) between US-based investment giant BlackRock, Singapore-based state-owned investment firm Temasek and China Construction Bank (CCB), the media reported.
The announcement was made on the website of the China Banking and Insurance Regulatory Commission (CBIRC) last week.
The deal comes at a time as the Chinese government is looking to open its financial market to foreign companies and investors. Last year, China amended some of its rules and regulations which now allow foreign investors to enter the market.
The announcement of the wealth management joint venture also comes at a time as China looks to get back on its feet after a pandemic which bought economic activities in the country to a stall. China hopes the entry of foreign entities in its financial market will help boost its economy.
Previously, foreign investors such as France-based Amundi, which is Europe’s largest asset manager, and Bank of China Wealth Management have received approval from Chinese regulators to set up a joint ventures in the country.
Also, similar approvals have been received from Chinese authorities by European lenders such as UBS and US-based investment giant JP Morgan Chase.
Another announcement that was made on CBIRC website was the approval for American insurer Chubb to increase its stake in Huatai Insurance to 46.2 percent.
HSBC recently revealed that it is also planning to increase its presence in the wealth management space in China. To bank said that it will hire 2,000 to 3,000 wealth planners within four years in China. The first 100 new people have already started in Guangzhou and Shanghai, according to HSBC.