Amundi is reportedly looking to take advantage of Wealth Management Connect scheme and China’s move to attain carbon neutrality by 2060 to boost its assets under management (AUM) in Asia.
The French asset manager aims to grow its AUM by 70% to €500bn in the next four years, according to a report by South China Morning Post.
Amundi Asset Management chairman for Greater China Zhong Xiaofeng told the publication: “China’s market is so huge that it is impossible for any investment manager to miss it.
“The country’s opening up policies to attract foreign investors and its policies to promote environmental, social and governance (ESG) have given confidence to global asset managers to invest in the country.”
Xiaofeng also added that the Covid-19 pandemic has also accelerated the firm’s investment in China.
“The pandemic has led asset management companies globally to further diversify their businesses into more markets because they cannot rely on developed markets which have much slower growth than mainland China, which has seen a quicker economic recovery due to its better control of the pandemic,” he added.
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Earlier this month, Bloomberg reported that Amundi is eyeing to more than double its AUM in the Greater China region to $250bn by 2025.
Wealth Management Connect will enable Hong Kong and Macau residents to purchase mainland investment products offered by banks in the bay area.
It will also enable residents of the nine Guangdong cities to buy investment products from banks in Hong Kong and Macau.
The initiative is said to be the first cross-border investment scheme in the Greater Bay Area.
Amundi managed €298bn assets in Asia as of the end of last year, representing 17% of its portfolio globally.
In Hong Kong and mainland China, the company had €101bn in assets, forming 6% of the company’s global AuM.
It is said to manage a total of €1.76trn in assets as of March.
In April this year, Societe Generale entered into an exclusive negotiation with Amundi to divest its fund management business Lyxor.