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October 30, 2020

Julius Baer eyes China wealth management JV to drive growth in Asia

Swiss private banking group Julius Baer is reportedly looking to launch a majority-owned joint venture (JV) business in China by joining forces with a local firm.

Free Report
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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.

The move is aimed at capitalising on the fast-growing wealth in the market to fuel growth in Asia.

The private bank is currently scouting for partners, Reuters reported citing people familiar with the issue.

The bank is expected to decide on the partner for the venture in 2021 prior to pushing ahead with the process of licence application, added the report.

The plans, if materialised, will make the Swiss bank the first major private bank to launch a wealth management JV in China.

Julius Baer spokesperson refused to comment on the plan.

The latest move follows Julius Baer’s partnership with Beijing International Wealth Management Institute to train and educate wealth managers in China.

China plans of other firms

Recently, several firms have been trying to make inroads into China – the second-largest country across the globe by number of billionaires – as the country continues its financial sector liberalisation plan to boost competition.

BlackRock recently secured the regulatory clearance to establish its China wealth management JV with Temasek and China Construction Bank.

The American asset manager also obtained the nod to launch a mutual fund arm in China.

JPMorgan, along with Credit Suisse, UBS, Goldman Sachs and Morgan Stanley were also cleared to acquire a controlling stake in their China securities JVs.

Earlier this month, Standard Chartered reportedly submitted an application for a brokerage licence with the China Securities Regulatory Commission (CSRC) while last month Citi became the first US bank to receive China fund custody licence.

Meanwhile, French asset manager Amundi recently formed a new JV with Chinese firm BOC Wealth Management while DBS received the go-ahead to set up a securities brokerage JV in China.

 

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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