European money manager Amundi and BOC Wealth Management, a Bank of China subsidiary, have received approval from China Banking and Insurance Regulatory Commission to launch a new joint venture in China.
It is the first asset management joint venture company with a foreign shareholder holding a majority stake under the wealth management framework regulated by CBIRC, a spokesman said in an email.
Amundi formed the partnership with BOC Wealth Management to "complement and accelerate Amundi's development strategy in China," a news release from Amundi said Friday.
"This fully demonstrates that the accelerated opening of China's financial market conforms to global market development trends, reflects the recognition of international investors to the development potential in the Chinese market, and promotes the healthy development of China's asset management market," said Liange Liu, Bank of China chairman, in the news release. "We are grateful to Amundi for choosing Bank of China as a partner. The two parties will cooperate sincerely, be committed to building a first-class asset management joint venture company and share the opportunities along the development of asset management market in China."
Bank of China established BOC Wealth Management on July 1 with a registered capital of RMB 10 billion ($1.4 billion).
The company is scheduled to launch in the second quarter of 2020. Staff and location for the new company has yet to be determined, the spokesman said.
Amundi has €1.6 trillion in assets under management.