NEW YORK – Goldman Sachs yesterday said it has won preliminary approval from Chinese regulators for a wealth management joint venture to serve customers in the country.
The venture, owned 51% by Goldman’s asset management division and 49% by a subsidiary of the state-owned Industrial and Commercial Bank of China, aims to serve some of the estimated US$70 trillion (RM209 trillion) in investible assets expected at Chinese households by 2030, said Goldman in a news release.
The announcement marks the latest sign of increased openness by Beijing to participation by foreign financial heavyweights.
JPMorgan Chase was authorised in December 2019 for a majority holding in a trading joint venture in China, followed a few months later by similar announcements from Goldman and Morgan Stanley.
Asset management giant BlackRock received approval early this month for a venture with China Construction Bank and Singaporean sovereign wealth fund Temasek, reported The Wall Street Journal.
“China’s wealth management industry has grown on the back of increased household wealth and continued financial market reform,” said Tuan Lam, head of client business for Asia Pacific ex-Japan at Goldman Sachs Asset Management.
“This joint venture with China’s pre-eminent financial institution will accelerate our objective of establishing a leadership position in one of the world’s largest, fastest-growing wealth management opportunities.” – AFP, May 26, 2021
