BNP Paribas Asset Management will own a 51% stake in the JV, added the unnamed person.
In an emailed statement to Bloomberg, the company confirmed that it has applied for a license to establish the JV with AgBank.
However, the firm refused to reveal further details.
Banks across the world have been competing to enter China’s wealth management industry through alliances with the country’s largest lenders, which have extensive distribution channel.
In 2018, China commenced overhauling of its wealth management sector. The revamp included suspension of guaranteed returns and other loopholes to reduce risks.
Even after having huge potential, global companies find it difficult to enter China’s wealth management market.
Previously, retail investors in China, who provides guarantee on returns on assets, took a shot at Amundi for unable to meet targets. In June this year, Reuters reported that BNP Paribas had closed its wealth management business in Brazil after transferring the business to its regional rival Banco Bradesco .