China’s regulators have given the go-ahead for the country’s third foreign-controlled wealth management joint venture as the government builds on its pledge to open up the rapidly growing financial sector to overseas investment, reported Caixin.
London-based asset management group Schroders PLC has won regulatory approval to set up a majority-owned wealth management venture with its long-time Chinese partner, Bank of Communications (BoCom), China’s sixth-largest commercial lender by assets. The Shanghai-based company, Schroder BoCom Wealth Management, will be 51% owned by Schroders, while BoCom Wealth Management, a wholly owned subsidiary of BoCom, will own 49%.
“The Chinese market represents a significant opportunity for Schroders, entailing the world’s second and third largest equity and bond markets respectively,” Schroders CEO Peter Harrison said in a statement. “As a result of our focus on China, we have been able to support both overseas investors looking to diversify into China and Chinese institutions keen to invest in the rest of the world.”