ICBC Wealth Management has received approval from the China Banking and Insurance Regulatory Commission to partner with Goldman Sachs Asset Management to form a wealth management joint venture in China.
ICBC Wealth Management is a wholly-owned subsidiary of Industrial and Commercial Bank of China (ICBC), while Goldman Sachs Asset Management is a business unit of US-based Goldman Sachs Group.
Both companies have agreed to jointly fund the new wealth management joint venture, where ICBC Wealth Management will contribute 49% funding, while Goldman Sachs Asset Management will fund 51%.
The new joint venture is expected to develop a wide range of investment products for the Chinese market, including quantitative investment strategies, cross-border products and advanced solutions in alternatives.
ICBC Wealth Management serves as the core platform and top brand in ICBC’s promotion of its mega asset management business.
The new joint venture will benefit its diversified and professional wealth management service offerings and enhance its capabilities to serve the real economy.
Also, ICBC will support ICBC Wealth Management in completing the joint venture company works in accordance with the regulatory requirements.
China has opened its financial sector to foreign companies as part of an interim trade deal with the US signed in January last year.
Earlier this month, BlackRock has obtained the license to open a wealth management firm in China, with a business arm of China Construction Bank and Singapore’s Temasek.
Last year, French asset management firm Amundi established a wealth management joint venture with the Bank of China subsidiary BOC Wealth Management.
