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October 1, 2020

Amundi forms new joint venture with BOC Wealth Management

By Hannah Wright

France-based asset management firm Amundi has announced a new joint-venture with Chinese firm BOC Wealth Management.

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Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

Amundi BOC Wealth Management Company, registered in the Lingang New Free Trade Zone in Shanghai, is the first foreign majority-owned company in China permitted to design and offer wealth management products to mainland investors.

Amundi will occupy a 55% stake while BOC Wealth Management, a subsidiary of the Bank of China, will hold 45%.

Having received its license from the China Banking and Insurance Regulatory Commission, the company will commence operations this month, and plans to launch its first product at the end of 2020.

The company will focus on the distribution of wealth management products to Chinese retail investors, giving priority to BOC customers. However, products will also be made available to other local distributors and digital platforms in China.

Yves Perrier, Amundi’s CEO, commented: “This venture, combining the best of both groups, will enable Amundi to bring first class international investment capabilities and services to Chinese investors, and will leverage Bank of China’s experience and extensive distribution network”.

Perrier anticipated that China would become one of the firm’s “major markets in the coming decade” and that the launch of the venture “is on track” with the firm’s plans to accelerate its development in China.

“Considering the depth of the wealth management market and its growth potential, the company expects a strong course of development”.

Liu Huijun, deputy-CEO of BOC’s insurance firm, has been selected as Chairman of the Board and Bao Aili, of Everbright Pramerica Fund Management in Shanghai, will become General Manager of the Company.

The joint venture is the latest demonstration of China’s greater receptivity of foreign financial institutions and services since Q1 of this year.

In June this year, the Chinese National Development and Reform Commission and Ministry of Commerce issued their latest Negative Lists, which document the industries where foreign investment is restricted. The lists, which took effect on 23rd July, saw a further reduction of the national measures limiting access for foreign investment. Over the last four years, Chinese policymakers have continued to reduce the number of restrictive measures. The National Negative Lists for 2020 had 17.5% fewer restrictive measures than in 2019.

In light of these changes, global investment firm BlackRock was also granted permission to form a wealth management joint venture with China Construction Bank and Fullerton Fund Management, an Asian investment specialist.

Forecasts by UBS predict fund assets of mainland China will rise by $12tn to $16tn between 2019 and 2030, representing the largest growth opportunity available for global investment managers.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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