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January 28, 2022

Schroders wealth management JV in China secures final regulatory nod

Schroders has received regulatory approval for the business commencement of its wealth management joint venture (JV) with Bank of Communications Wealth Management (BCOWM).

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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 approval was granted by the China Banking and Insurance Regulatory Commission (CBIRC).

The British fund manager first received regulatory permission to form the business in February 2021.

The latest approval will allow Schroder BOCOM Wealth Management, which has registered capital of $158m (CNY1bn), to start operating immediately. It is said to be the third international joint venture wealth management company to be licenced in China.

Schroders Investment Management owns 51% of the JV while the remaining 49% stake is held by BCOWM.

BCOWM is an existing partner for Schroders’s Chinese fund management JV, which it set up in 2005.

Having established its Chinese footprint in 1994, the fund manager has been accelerating its China push to grab a bigger piece of the country’s evolving economy.

Schroders said that its new JV with BCOWM will provide significant opportunity to tap into China’s sizeable equity and bond markets.

Schroders Global head of Distribution Lieven Debruyne said: “The announcement of this licence is an important development in the long and successful relationship we have built with BOCOM. Since 2005, we have supported our partner on asset management needs.

“This is a new chapter. It offers the opportunity to grow a wealth management proposition together, to further extend our first-class investment capabilities and innovative product range to a greater number of savers in China.”

Amundi BOC Wealth Management Company is the first foreign majority-owned company to be cleared by CBIRC to provide wealth management products to mainland investors.

It secured its licence from the regulators in September and started operations in October.

In 2020, the CBIRC granted approval for BlackRock to form its wealth management JV with Temasek and China Construction Bank.

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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