Scotiabank and its joint venture partner Bank of Beijing’s Bank of Beijing Scotiabank Asset Management Co. Ltd. has received regulatory approval for a license to operate as a fund management company in China.
The license is the first fund management license issued in China under a new round of pilot programs allowing commercial banks to set up fund management companies.
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As part of this joint venture, while Bank of Beijing holds a majority interest in the fund management company, both Scotiabank and General Research Institute for Nonferrous Metals hold minority stakes.
Chris Hodgson, group head of Global Wealth Management at Scotiabank, said: "Scotiabank is proud to be working with the Bank of Beijing to establish a fund management joint venture in China and contribute to the development of China’s growing wealth management sector. This is another way that Scotiabank is growing and investing to build on the strength of our international wealth management platform."
The bank added that high saving rates among citizens, pace-setting economic growth and an increase in China’s working-age population are expected to drive asset growth of Chinese fund management companies.
The total assets under management (AUM) in the industry as at the end of 2012 were reported to be at RMB2.79 trillion (US$450bn).
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By GlobalDataIn September 2011, Scotiabank had announced to the acquisition of a 19.99% stake in the Bank of Guangzhou, subject to regulatory approval; and Scotiabank holds a 19% interest in Bank of Xi’an.
