BNP Paribas has received Chinese regulatory approval to start building an asset management venture with Agricultural Bank of China (AgBank), the two companies said, allowing the French firm to tap a $4 trillion market, reports Reuters. The French firm will own a 51% stake in the venture, while state-owned AgBank will have the rest.
The China Banking and Insurance Regulatory Commission (CBIRC) has granted initial approval to allow BNP and AgBank, China’s third-biggest lender by assets, to form a new joint venture, according to an AgBank stock exchange filing late on Monday.
BNP confirmed the initial approval, which is in the form of the CBIRC formally accepting the two companies’ application for a final license to open for business in the market.
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