British fund manager Schroders has reportedly secured the clearance to launch a majority-owned wealth management JV with a unit of Chinese lender Bank of Communications (BOCOM).

The new JV will be based in Shanghai, reported Reuters.

Schroder Investment Management will own majority of the JV, with a 51% holding. BOCOM Wealth Management will own the remaining 49%, according to the report.

This marks the third wealth management venture in the country, which has recently opened up its financial services sector to foreign players to boost competition.

Last year, French asset manager Amundi announced a new joint-venture with Chinese firm BOC Wealth Management.

Amundi BOC Wealth Management Company is the first foreign majority-owned company in China permitted to design and offer wealth management products to mainland investors.

It secured its licence from the China Banking and Insurance Regulatory Commission (CBIRC) in September and stated operations in October.

In 2020, BlackRock too received the approval of the CBIRC for its wealth management JV with Temasek and China Construction Bank.

In this context, Schroders group CEO Peter Harrison reiterated the firm’s commitment to the Chinese market.

He said: “The Chinese market represents a significant opportunity for Schroders, entailing the world’s second and third largest equity and bond markets respectively.”

The latest move comes shortly after Schroders applied to establish a wholly-owned mutual fund business in China.

Schroders already has a mutual fund venture with Bank of Communications (BOCOM) in China along with a private fund business in the country.

The fund manager has been working with BOCOM since 2005. In that year, the companies formed a joint venture that operates as Bank of Communications Schroder Fund Management.

In 2019, Schroders expanded its partnership with the bank, with the aim of supporting public and private fund management products, innovative product development, along with domestic and cross-border cooperation.