German asset manager Allianz Global Investors (AllianzGI) has submitted an application to the Chinese authority for setting up a new fund management unit in the country.

The application, which was filed last Friday, if approved will mark AllianzGI’s foray into China’s $3.95 trillion fund management industry.

It comes six months after a Reuters report that stated that AllianzGI was holding talks with Chinese banks to create a majority-owned asset management joint venture (JV) in China.

The firm was reportedly held discussions with Industrial Bank and China CITIC Bank, among others.

In a statement seen by the publication, an AllianzGI spokesperson said that the application “further demonstrates the firm’s commitment in China and its dedication to develop the onshore fund management business in this important market.”

If approved, the proposed fund management unit will help AllianzGI to launch a greenfield fund unit and strengthen its footprint in China’s mutual fund industry.

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By GlobalData

It will be in addition to a Sino-foreign JV that was founded in 2003 by AllianzGI’s parent company Allianz. The insurance giant owns a 49% stake in the JV.

Several global asset managers including BlackRock, Fidelity International and Schroders are looking to enter China’s onshore financial market by setting up local fully-owned fund units.