Goldman Sachs has received an initial regulatory nod in China for a wealth management joint venture (JV) with Industrial and Commercial Bank of China (ICBC).

ICBC said its wholly-owned subsidiary ICBC Wealth Management was granted approval by China Banking and Insurance Regulatory Commission for the JV.

Goldman Sachs Asset Management will own a 51% stake in the venture, while the remaining interest will be held by ICBC Wealth Management.

According to ICBC, the JV will be beneficial to its provision of more diversified and professional wealth management services.

Goldman filed an application with the China Securities Regulatory Commission in August 2019 for a controlling stake in its local securities JV.

In December 2020, reports emerged about Goldman is pursuing talks with the wealth management arm of ICBC to launch a majority-owned JV in China.

The US-based investment giant is in the process of recruiting 320 staff in China and Hong Kong this year as it looks to implement its China strategy.

This is said to include 70 resources to focus on investment banking coverage.

Previously, it was reported that the bank is planning to increase its employee headcount in China by two-fold over the coming five years to 600.

Meanwhile, earlier this month, US asset manager BlackRock reportedly secured licence in China for a majority-owned wealth management venture with a China Construction Bank unit and Singapore state investor Temasek.

Last month, BNP Paribas submitted an application with the Chinese securities regulator to set up a securities company in the country as it opens up its capital markets.